The NEO project's treasury, valued at hundreds of millions of dollars, has been controlled through personal wallets without multisig protection or formal oversight. According to co-founder Da Hongfei, the other co-founder, Erik Zhang, holds around 85% of the project's crypto assets, worth between $200 million and $250 million, with single signature control. 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 two co-founders have been publicly disputing since December, with their disagreements resulting in rival governance plans and an unsuccessful mediation effort. Da's proposal aims to introduce mutual disarmament, where both he and Zhang would sacrifice their individual control over assets.
However, the success of this plan depends on Zhang's cooperation, which is uncertain. The situation has sparked concerns among observers, given the project's significant treasury holdings and the token's substantial decline in value since its 2018 peak.