Neo Founder Erik Zhang Accuses Da Hongfei Over Fund Disclosure

A public dispute has emerged between the two co-founders of Neo. Erik Zhang and Da Hongfei are trading accusations on X over treasury control, financial transparency and governance. The disagreement, which has unfolded over several weeks, intensified on December 31. As both sides released detailed statements addressing the community.

Dispute Centers on Financial Transparency

Erik Zhang, Neo founder and core developer, accused Da Hongfei of failing to honor commitments to publish financial disclosures. That is related to the Neo Foundation (NF). Zhang called for a complete and verifiable financial report. Including a full inventory of assets and detailed expenditure records managed by the foundation. 

He said that, despite earlier assurances made during a phone call in early December. No formal statement or financial report had been released. Zhang argued that the lack of disclosure has left the community unable to assess how foundation funds are held or spent. He described the situation as a “black box.” Zhang also stated that, under an agreement he claims was reached. Da Hongfei would focus on NeoX and SpoonOS from January 1, 2026. He also steps away from matters related to the Neo mainnet.

Da Hongfei Pushes Back on Treasury Control Claims

Da Hongfei, Neo’s other co-founder, rejected Zhang’s accusations and responded publicly. He said it was “ironic” to be asked for financial disclosure by someone. He claims to control the majority of Neo’s treasury and consensus node voting power.

According to Da, he has repeatedly urged Zhang to move NEO and GAS tokens from personal custody into NF-controlled multi-signature wallets. He argued that a blockchain project cannot function safely. if its treasury remains under the control of a single individual.

Da Hongfei said he avoided making the issue public in the past to protect community confidence. However, he added that the community had misinterpreted his silence. He confirmed that the team would release an end of 2025 financial report covering NF and Neo Global Development in the first quarter of 2026. With preliminary figures shared earlier, if possible.

Governance and Conflict of Interest Allegations

The dispute expanded beyond financial reporting into broader governance concerns. Zhang claimed that, after he stepped away from Neo in the past. Da Hongfei began developing a separate blockchain project. Which Zhang described as a competing initiative. He framed this as a conflict of interest that weakened internal checks within Neo.

Da Hongfei denied these claims. Instead, his concerns over prolonged delays in securing the treasury via multisig drove his proposal for one person to manage Neo. Specifically, he said such custody arrangements are “not negotiable” for the safety of the network and its users. Consequently, both founders accused each other of misrepresenting facts, with repeated exchanges questioning who controls which assets and why certain funds remain outside multisig custody.

Community Reaction and Next Steps

The public nature of the dispute has drawn strong reactions from the Neo community. Many users have urged both founders to de-escalate and focus on releasing clear financial reports. Specifically, he argued that transparency is the fastest way to restore trust. In response, several community members stressed that the conflict risks overshadowing Neo’s development progress at a difficult time for the market.As the exchange continues, observers now focus their attention on whether the team will provide the promised financial disclosures. In early 2026 will clarify asset custody and governance responsibilities. Currently, the disagreement remains unresolved with both founders maintaining their positions as the debate continues in public view.