Erik Zhang, co-founder of NEO, is the sole controller of a significant portion of its crypto assets, sparking calls for governance changes from his fellow founder. According to Da Hongfei, another co-founder and architect of NEO’s core protocol, approximately 85% of the native NEO and GAS tokens—valued between $200 million and $250 million—are managed through Zhang’s personal wallet without multisig safeguards or formal oversight.
The dispute between the founders has been public since December. Da Hongfei’s proposal published on GitHub on April 9 suggests relocating the Neo Foundation to the Cayman Islands, establishing an independent five-member board, barring both founders from the board for two years, and redistributing about 26 million NEO and 40 million GAS tokens among holders.
In contrast, Zhang advocates for remaining in Singapore and retaining his position on the board. His proposal demands a formal investigation into past asset management to address potential corruption or mismanagement. Da Hongfei refutes these claims, asserting there has been no misconduct: “I think it’s a very blunt and empty accusation,” he stated.
NEO’s treasury currently holds approximately $460 million in assets, double its market value of $197 million, while the token price has dropped 98% from its peak in 2018. NEO’s FY2025 report disclosed holdings including over 1,100 BTC, more than $100 million in stablecoins and cash, along with venture investments like an unliquidated Binance stake.
The treasury is divided between Zhang’s control of the native tokens and Da Hongfei’s management of other assets via NGD. This division has resulted in a deadlock, as both parties hold sway over each other yet refuse to act first. Da framed his proposal as a mutual surrender: “NGD will lose its control over most of the assets, including BTC and stablecoins worth more than $200 million. And Eric will lose his personal control over the majority of NEO tokens.” He expressed willingness but questioned Zhang’s cooperation.
The restructuring hinges on Zhang transferring single-signature token holdings to a multisig address, with Da committing to a three-month timeline if agreed upon. When asked about potential refusal from Zhang, Da emphasized community decision-making: “If one person holds half of a crypto native token and resists transitioning to multi-sig governance, the community must decide what actions are necessary.” CoinDesk’s request for comment from Erik Zhang remained unanswered at publication time.