Key Takeaways
- Neo co-founders Erik Zhang and Da Hongfei are publicly fighting over the project’s finances and control.
- Zhang says Hongfei has kept the finances secret for years and must now share a full report.
- The argument undermines trust in Neo, with both parties claiming to protect the project.
The Neo blockchain, often referred to as the “Chinese Ethereum” due to its smart contract capabilities and focus on digital assets, has been rocked by a public feud between its co-founders, Da Hongfei and Erik Zhang.
This dispute centers on financial transparency, control over the project’s treasury, and allegations of governance hijacking.
Chinese Ethereum Killer Controversy
As of Dec. 31, the co-founders had exchanged pointed allegations on X, with each believing the other was to blame for opacity and potential resource waste.
Neo co-founder Erik Zhang accused Da Hongfei of failing to disclose Neo Foundation finances and urged a complete, verifiable report.
He said Hongfei will step back from Neo mainnet work, effective Jan. 1, 2026, to focus on NeoX and SpoonOS.
Hongfei replied that Zhang controls most NEO funds and consensus power, stating that one person should not run the project. He had long pushed for moving NEO/GAS to NF multisig wallets, but Zhang had repeatedly delayed the transfer.
“Before today, I avoided raising this publicly to protect community confidence and to give space for an orderly resolution. That silence was born of the hope that he would honor his promise. That restraint has now been misinterpreted. I should have done this earlier.”
This has sparked concerns about Neo’s future stability, particularly considering its history of pivots from Antshares to Neo, as well as migrations such as N3.
The controversy between the two founders of the popular blockchain network highlights deeper issues in decentralized project management, where personal control over funds can undermine community trust.
Neo’s History
The latest spat between the two co-founders stems from a protracted historical conflict of oversight.
Zhang alleged that Hongfei approached him privately, before 2025, claiming that joint oversight was inefficient and suggesting that one of the founders step down.
The co-founder allegedly agreed to withdraw, believing it would benefit Neo.
Zhang realized that Hongfei was working on AEON, a new blockchain project with its own coin that might potentially utilize Neo’s resources.
This motivated Zhang to return and question what he regarded as a conflict of interest.
According to Zhang, a phone call agreement was reached, where Hongfei would disclose financial reports and shift focus to side projects, such as NeoX, a cross-chain bridge, and SpoonOS, an operating system layer for Neo.
Erik posts publicly on Dec. 31, accusing Da of failing to honor the agreement. He demands the immediate disclosure of NF assets and expenditures, stating that Da will no longer handle Neo mainnet matters as of Jan. 1, 2026.
Da responds, countering that Erik controls the “super majority” of NEO/GAS in personal custody, refusing to transfer to multisig wallets despite promises. Da pledges a full 2025 financial report in Q1 2026 and vows to pursue treasury transfer through “all available remedies.
Da Hongfei and Erik Zhang established Antshares in 2014, which was later rebranded to Neo in 2017 amid China’s blockchain boom. Da Hongfei, who is sometimes referred to as the public face, has prioritized company development, collaborations, and ecosystem expansion.
The current spat revolves around the NF’s treasury—estimated to include significant NEO/GAS holdings and allegations that one founder has monopolized access, leading to a “black box” of unaccounted expenditures.
Community sentiment reflects displeasure with both parties for undermining confidence. Users and analysts describe it as a “governance breakdown” and a “trainwreck,” seeking rapid disclosures to restore credibility.
Some note danger signals, such as blocked access to reports, which mimic bigger blockchain governance flaws encountered in projects like Mantra DAO.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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