Neo Co-Founders Clash Over Treasury Control and Transparency

Neo blockchain’s co-founders have entered a public dispute over financial transparency and treasury control. Erik Zhang and Da Hongfei exchanged accusations on social media platform X, each claiming the other holds undisclosed assets. The conflict has sparked community concern and prompted some investors to sell their NEO tokens.

It is ironic to be asked for "financial disclosure" by the very person who controls the super majority of Neo's treasury, dictates the voting of consensus nodes, and has shown no hesitation to hijack the protocol at the expense of the community and token holders.

A blockchain…

— Da Hongfei (@dahongfei) December 31, 2025

Zhang initiated the public confrontation by accusing Da of failing to deliver promised financial disclosures. He described the Neo Foundation’s finances as a “black box” with zero independent oversight. Zhang also claimed Da agreed to exit mainnet governance by January 2026 to focus on NeoX development.

Da countered by alleging Zhang controls the “super majority” of Neo’s treasury. He accused Zhang of delaying transfers to a multi-signature wallet for years. Da stated he avoided raising the issue publicly to protect community confidence.

The dispute has revealed deep fractures in Neo’s leadership structure. Both founders now claim the other has failed to uphold basic governance standards. Community members on Reddit have expressed confusion and concern over the conflicting narratives.

Neo Founders Trade Accusations of Competing Projects and Conflicts of Interest

Zhang alleged Da has been developing a competing blockchain project called EON. According to Zhang, this project would issue a separate token while Da maintains his Neo founder status. Zhang characterized this as a “fundamental conflict of interest.”

I owe the community a clear explanation of why I originally stepped away from Neo, and why I later chose to return.
At the time, @dahongfei requested a private meeting. He told me that having two people jointly overseeing the Neo Foundation (NF) was, in his view, slowing Neo down…

— Erik Zhang (@neoerikzhang) December 31, 2025

Da flatly denied the EON allegations in his response. He accused Zhang of controlling consensus node voting and potentially hijacking the protocol. Da pledged to release an end-of-2025 financial report in Q1 2026.

Zhang originally stepped away from Neo after Da proposed single leadership would improve efficiency. Da reportedly told Zhang that either one of them should leave. Zhang agreed, believing it served Neo’s best interests.

Following his departure, Zhang discovered the alleged EON project. He confronted Da and proposed that Da should step away instead. Zhang stated this proposal was “immediately and unequivocally rejected.”

Da framed the original proposal differently. He claimed it resulted from Zhang’s delays in transferring treasury funds. Da described his proposal as a “last effort to get the treasury secured.”

Treasury Control Dispute Escalates

The core disagreement centers on who actually controls Neo’s assets. Da claimed Zhang holds NEO and GAS tokens in personal custody rather than multi-signature addresses. He stated blockchain projects cannot function under one person’s control.

False. I proposed that either you or I manage Neo because you intentionally delayed the treasury hand-over to NF for years. I'm not willing to risk Neo and the community anymore. That proposal was my last effort to get the treasury secured.
You agreed because you were running… https://t.co/gFQaHo2vGB

— Da Hongfei (@dahongfei) December 31, 2025

Zhang fired back with his own questions about non-NEO/GAS assets. He asked why BTC, ETH, and tokens from invested projects remain under Da’s sole management. Zhang stated he never received a complete asset inventory from Da.

Da responded by questioning which “majority assets” Zhang referenced. He noted that Neo Foundation and Neo Global Development primarily invested in ecosystem projects and crypto funds. These investments will appear in the upcoming financial report.

The dispute has created uncertainty within Neo’s community. Some community members have expressed greater trust in Zhang’s account. Others have begun selling NEO tokens amid what they perceive as governance red flags.