For years, the NEO project's treasury was controlled through personal wallets with minimal oversight, a situation that co-founder Da Hongfei believes must change. According to Hongfei, co-founder Erik Zhang holds around 85% of the project's crypto assets, valued at between $200 million and $250 million, with single-signature control. This arrangement has raised concerns, particularly given the project's market capitalization of $197 million.
The two co-founders have been publicly disputing since December, with Hongfei proposing 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 response, Zhang has called for an investigation into historical asset management, citing potential corruption and misuse of funds. Hongfei has dismissed these allegations, characterizing them as baseless accusations.
The dispute has resulted in a stalemate, with each co-founder holding significant assets and leverage over the other. Hongfei has framed his proposal as a form of mutual disarmament, where both he and Zhang would relinquish control over their respective assets. However, the success of this plan relies on Zhang's cooperation, which remains uncertain. If Zhang refuses to transfer the single-signature token holdings to a multisig lock address, the project's future remains unclear, with Hongfei suggesting that the community must decide the next course of action.