The control of hundreds of millions of dollars in cryptocurrency has been a point of contention for the NEO project, with co-founder Da Hongfei stating that a significant portion of the project's treasury is held by his fellow co-founder, Erik Zhang. This unusual setup has raised concerns about the lack of multisig protections and formal oversight. According to Da, approximately 85% of the funds are controlled by Zhang alone, with an estimated value of between $200 million and $250 million.
The native NEO and GAS tokens held by Zhang are currently worth more than the project's market capitalization. The two co-founders have been publicly disputing the issue since December, with each presenting rival governance plans.
Da's proposal involves redomiciling the Neo Foundation to the Cayman Islands, establishing an independent five-member board, and redistributing tokens to holders. Zhang's counter-proposal, on the other hand, calls for a formal investigation into historical asset management and provisions to address potential corruption. Da has dismissed these allegations, stating that there is no corruption or misuse of funds. The dispute has resulted in a stalemate, with each co-founder holding significant leverage over the other.
Da has framed his proposal as a form of mutual disarmament, where both parties would relinquish control over the assets. However, the success of this plan depends on Zhang's cooperation, which remains uncertain.