The NEO project's treasury, valued at hundreds of millions of dollars, has been controlled through personal wallets with no multi-sig protection, sparking concerns over governance and oversight. According to co-founder Da Hongfei, Erik Zhang, the project's other co-founder, holds around 85% of the treasury, worth between $200 million and $250 million, with single signature control.
Da has proposed a restructuring plan, which 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 led to a stalemate, with both founders 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 the plan hinges on Zhang's cooperation, which remains uncertain.