Neo Blockchain Shaken: Co-Founders Erik Zhang and Da Hongfei Clash Over Funds and Control

The world of cryptocurrency is no stranger to drama, but the latest has everyone talking. Co-founders Erik Zhang and Da Hongfei are locked in a public battle over money, power, and the future of their project. What started as private talks has exploded into open accusations on social media. This feud raises big questions about trust, governance, and transparency in blockchain projects.

What is Neo Blockchain?

Neo is a popular blockchain platform often called the “Chinese Ethereum.” Launched in 2014 as Antshares, it rebranded to Neo in 2017 during China’s blockchain boom. Neo supports smart contracts, digital assets, and decentralized apps (dApps). It uses two tokens: NEO for governance and GAS for transaction fees.

Da Hongfei and Erik Zhang built Neo together. Hongfei is known as the public face, focusing on partnerships and growth. Zhang handles technical work, like mainnet development. Together, they grew Neo into a top player with features like cross-chain bridges (NeoX) and tools like SpoonOS.

But now, their partnership is cracking under pressure from disputes over the Neo Foundation’s (NF) treasury. This fund holds valuable NEO and GAS tokens meant to support the ecosystem.

The Spark: Accusations Fly on December 31

On December 31, Erik Zhang went public on X (formerly Twitter). He accused Da Hongfei of hiding Neo Foundation finances for years. Zhang demanded a full, verifiable report on assets and spending right away.

“Hongfei must share a complete report,” Zhang wrote. He also said Hongfei would step back from Neo mainnet work starting January 1, 2026, to focus on side projects like NeoX and SpoonOS.

Hongfei fired back quickly. He claimed Zhang controls most NEO and GAS funds, plus a “super majority” of consensus power. Hongfei said one person should not run everything alone. He had pushed for years to move funds to secure multisig wallets shared by the community, but Zhang delayed it repeatedly.

“I stayed quiet to protect community trust and hope for a smooth fix. Now, that silence is misunderstood. I should have spoken sooner,” Hongfei posted.

This exchange marks the in dramatic fashion. Both say they act to save Neo, but their words paint a picture of broken trust.

A Deeper History of Tension

The fight did not start overnight. Zhang claims Hongfei approached him before 2025. Hongfei said joint control was inefficient and suggested one founder step aside. Zhang agreed at first, thinking it would help Neo.

But then Zhang learned about AEON, Hongfei’s new blockchain project with its own token. Zhang worried it might use Neo’s resources, creating a conflict. He returned and confronted Hongfei.

They reportedly agreed on a phone call: Hongfei would release financial reports and shift to side projects. Zhang says Hongfei broke that deal, leading to the public post.

Hongfei disagrees. He promises a full 2025 financial report in Q1 2026 and will fight for treasury transfer using all options.

Key Issues at Stake

Financial Transparency: The NF treasury holds a lot of NEO and GAS. No one knows exact amounts or spending. This “black box” worries holders.
Control and Governance: Who holds the keys? Zhang allegedly keeps most in personal custody. Hongfei wants multisig for safety.
Project Focus: Neo has a history of changes, like from Antshares to Neo and the N3 upgrade. More drama could scare developers away.

This mirrors problems in other projects, like Mantra DAO, where governance fights hurt prices and trust.

Community Reaction: Anger and Worry

Neo fans are upset. On social media and forums, people call it a “governance breakdown” and “trainwreck.” Many want quick disclosures from both sides.

Some blame Zhang for hoarding power. Others fault Hongfei for secrecy. Holders fear token dumps or project forks. NEO price has dipped amid the news, showing market nerves.

Analysts say this highlights a big crypto problem: Founders often control too much in “decentralized” projects. True decentralization needs community votes and open books.

What Does This Mean for Neo’s Future?

Neo faces tough times. It must fix governance to attract builders and investors. Past pivots show resilience, but endless founder fights could kill momentum.

Positive steps could include:

Publishing full audits now.
Moving to multisig wallets fast.
Setting up a community council for decisions.

If resolved well, this could make Neo stronger. Lessons on transparency might draw more users. But if it drags on, rivals like Ethereum or Solana could pull ahead.

Broader Lessons for Crypto

The feud shows why governance matters. In crypto, billions sit in foundation wallets. Without checks, power grabs happen.

Projects like Cosmos and Polkadot use on-chain voting to share power. Neo could learn from them. Investors should check tokenomics and team control before buying.

This drama also spotlights China’s role in blockchain. Neo thrives despite regulations, but founder spats add risk.

Final Thoughts

The battle between Erik Zhang and Da Hongfei over tests Neo’s strength. Both built something great, but trust is broken. The community watches closely.

Will they unite for transparency? Or will division doom Neo? Stay tuned as reports roll out in 2026. For now, this reminds us: In crypto, people still hold the real power.

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Filed under: Altcoins - @ December 31, 2025 1:31 pm