Neo investigates large-scale NEO transfers that impacted token price and Council voting

Neo has initiated an investigation into a series of large-scale NEO token movements that affected consensus node composition and coincided with a sharp decline in the token’s market value. Typically, neither the Neo Foundation or Neo Global Development addresses price action or comment on market activity, but Neo released the research to address speculation that someone directly affiliated with the project was moving the assets.

The activity, which began on March 24, involved the transfer of approximately 9.25 million NEO—representing around 13.2% of the total circulating supply—through intermediary wallets that are tied to a Binance deposit wallet.

In a statement to the community, the Neo team emphasized that neither the NF nor NGD, including the project’s founders and other team members, were responsible for initiating or influencing the recent transactions. The team added:

Neither the Neo founders nor our team have sold any NEO tokens during this period. At this stage, we do not have specific information about who is behind these transactions, but we are committed to uncovering the facts and ensuring transparency.

The activity stems from a wallet that initially accumulated NEO and GAS on Neo Legacy between 2017 and 2021, reportedly through fund consolidation tactics from several addresses, including a known Binance hot wallet and wallets suspected to belong to centralized exchanges. On Sep. 7, 2021, the wallet migrated 11,145,525 NEO from Neo Legacy to N3 and received 11,256,930 NEO through the Token Migration Incentive Program.

This initial recipient, referred to as “Neo N3 Wallet 1,” subsequently transferred its entire balance to “Neo N3 Wallet 2” on Sep. 17, 2021. The latter wallet cast its vote for Neo SPCC as a Neo Council candidate, contributing to Neo SPCC’s position among the Top 7 consensus nodes, which it maintained for several years.

Neo’s research reveals that from Neo N3 Wallet 2, NEO was gradually distributed to a series of related wallets and ultimately deposited into a Binance deposit wallet. The recent transfers mark a significant concentration of that distribution, with all tokens previously used to support Neo SPCC now relocated. As of press time, Neo SPCC has moved out of the Top 21 consensus candidates and is now ranked 22nd, backed by 162,996 NEO.

Source: Neo

Neo clarified that the information presented is limited to on-chain activity. While the timing of the transfers aligns with the observed decline in NEO’s market value, the team noted that there is no on-chain data confirming that sales occurred on custodial exchanges, and as such, any link between the token transfers and the price drop remains speculative.

Neo affirmed its commitment to transparency and pledged to share further updates with the community as new information becomes available. Additionally, Neo founder Da Hongfei said, “Neo Foundation is preparing a contingency plan to address the ongoing market turmoil.”

The full announcement can be found at the link below:
https://x.com/Neo_Blockchain/status/1907079105646092787

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