Neo Cofounders Trade Accusations Over Funds and Power Rule
- Erik Zhang demands full Neo Foundation reports and says disclosure delays erode trust.
- Da Hongfei says treasury custody must shift to multisig to protect governance balance.
- The community urges transparency as the Neo dispute threatens focus on development efforts.
A public dispute between Neo co-founders Erik Zhang and Da Hongfei has escalated over treasury control, financial transparency, and governance, drawing sharp community attention. The disagreement, aired on X, intensified on December 31 as both founders released detailed statements addressing Neo Foundation finances, asset custody, and decision-making authority. At stake are control of funds, disclosure standards, and leadership focus as Neo approaches 2026.
Treasury Control and Financial Disclosure Claims
Zhang accused Da of failing to publish verifiable financial disclosures for the Neo Foundation. He called for a complete report that details assets, holdings, and spending records managed by the foundation. According to Zhang, earlier assurances did not result in any formal release.
He said the absence of disclosure prevents the community from assessing how foundation funds are held or spent. Zhang described the situation as a “black box,” arguing that transparency remains essential for trust and accountability within the project.
Zhang also stated that an agreement reached earlier in December would see Da shift focus away from Neo mainnet matters. Under that claim, Da would concentrate on NeoX and SpoonOS from January 1, 2026, while stepping back from mainnet-related responsibilities.
Da Hongfei Responds on Custody and Governance
Da Hongfei rejected Zhang’s claims and countered with accusations of concentrated control. He said Zhang controls a supermajority of Neo’s treasury and directs consensus node voting. He argued that such control undermines decentralized governance.
“It is ironic to be asked for ‘financial disclosure’ by the very person who controls the supermajority of Neo’s treasury,” Da said. He added that a blockchain project cannot function under one person’s custody.
Da stated that he has long urged Zhang to move NEO and GAS tokens from personal custody to Neo Foundation multisignature wallets. He said Zhang repeatedly delayed the transfer, most recently tying it to completion of the N3 migration. Da added that he sought this change while keeping Zhang as a key holder.
He said he avoided raising the issue publicly to preserve community confidence and allow time for resolution. “That silence was born of the hope that he would honor his promise,” Da said, adding that restraint had now been misread.
Broader Governance Dispute and Community Reaction
The dispute expanded beyond finances into governance and conflicts of interest. Zhang claimed that after he stepped away from Neo in the past, Da began developing a separate blockchain project. Zhang described that work as a competing initiative that weakened internal checks.
Da responded by reaffirming his commitment to Neo and the community. “Neo is my brainchild, and I will never abandon it or this community,” he said. He added that the Neo Foundation remains committed to long-term development and governance.
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Da also said the foundation will enforce strict fiscal discipline due to current resource constraints. He added that efforts to transfer treasury custody will continue through all available remedies.
The public exchange drew strong reactions from the Neo community. Many users urged both founders to de-escalate and publish clear financial reports as soon as possible. Others warned that the conflict risks overshadowing Neo’s development during a difficult market period.
As focus shifts to the beginning of 2026, analysts are already looking for articulated revelations that explain the roles of asset custody and governance. Will the clear-cut reporting be able to eliminate the disagreement and win back the trust as Neo progresses?
