The cryptocurrency project NEO has been embroiled in a dispute between its co-founders, Da Hongfei and Erik Zhang, over the control of hundreds of millions of dollars in crypto assets. According to Da, Zhang has sole control over around 85% of the project's treasury, which is currently valued at between $200 million and $250 million. This unusual setup has raised concerns, as the funds are held in personal wallets with no multi-sig protections and little oversight.
Da has proposed a restructuring plan that includes redomiciling the Neo Foundation to the Cayman Islands, establishing an independent five-member board, and redistributing tokens to holders. In contrast, Zhang's counter-proposal involves staying on the board, keeping the Foundation in Singapore, and conducting a formal investigation into historical asset management. The dispute has sparked a heated debate, with some observers pointing out that the project's treasury holds approximately $460 million in assets, roughly double its market value, while the token has plummeted 98% from its 2018 peak. Da has characterized his proposal as a form of mutual disarmament, where both he and Zhang would relinquish control over the assets.
However, the success of this plan relies on Zhang's cooperation, which remains uncertain.