A major governance dispute has emerged within the NEO ecosystem after co-founder Da Hongfei revealed that fellow co-founder Erik Zhang controls approximately $200 million to $250 million in crypto assets through a single-signature wallet without multisig protection or formal oversight. The assets include NEO and GAS tokens and are valued above the project’s current market capitalization of about $197 million.
Da Hongfei stated that nearly 85% of the token-based treasury remains under Zhang’s sole control, raising concerns about centralized custody within a decentralized project structure. Meanwhile, the broader Neo treasury is estimated at around $460 million, including Bitcoin, Ethereum, stablecoins, and venture investments.
Competing Governance Proposals Deepen Internal Conflict
The dispute has escalated into competing restructuring proposals. Da Hongfei has called for relocating the Neo Foundation from Singapore to the Cayman Islands, introducing an independent five-member board, and excluding both founders from governance roles for a transition period. His plan also includes redistributing millions of NEO and GAS tokens to community holders to improve decentralization.
In contrast, Erik Zhang has pushed for remaining on the board and keeping the foundation in Singapore, while also demanding formal investigations into historical asset management practices, including claims of potential irregularities.
Treasury Division and Community Role at Center of Debate
Neo’s financial disclosure shows over 1,100 BTC, more than $100 million in stablecoins, and additional holdings across multiple investment vehicles. Da Hongfei described the situation as a form of “mutual disarmament,” where both founders would relinquish unilateral control over major assets.
However, the restructuring plan depends on Zhang agreeing to transfer token holdings into a multisignature structure. Without consensus, Da indicated that the final decision may rest with the broader community as governance tensions continue to intensify.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.