The NEO project's treasury, worth hundreds of millions of dollars, has been controlled by a single individual, co-founder Erik Zhang, with no multi-sig protection and limited oversight. According to co-founder Da Hongfei, Zhang holds around 85% of the project's assets, including native NEO and GAS tokens, valued between $200 million and $250 million.
Da has proposed a restructuring plan, which includes relocating 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 between the co-founders has led to a stalemate, with each holding significant leverage over the project's assets.
Da has framed 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 depends on Zhang's cooperation, which remains uncertain.