The treasury of a prominent cryptocurrency project has been managed in an unconventional manner, with hundreds of millions of dollars in assets controlled by personal wallets lacking multisig protection and formal oversight. According to co-founder Da Hongfei, his fellow co-founder Erik Zhang holds around 85% of the project's assets, valued between $200 million and $250 million, with single signature control. Da has proposed a restructuring plan, which involves relocating the project's foundation to the Cayman Islands, establishing an independent five-member board, and redistributing tokens to holders. In contrast, Zhang's counter-proposal suggests retaining the current governance structure and conducting an investigation into historical asset management.
The dispute between the co-founders has been ongoing since December, with both parties airing their grievances publicly. The project's treasury holds approximately $460 million in assets, which is roughly double its current market value. The token has experienced a significant decline, dropping 98% from its peak in 2018.
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 relies on Zhang's cooperation, which is uncertain. If Zhang refuses to transfer the single-signature token holdings to a multisig lock address, Da believes the community should decide the course of action.