Neo has launched an extensive investigation into a series of large-scale NEO token movements that have raised eyebrows within the crypto community. This activity, which began on March 24, involved the transfer of approximately 9.25 million NEO—accounting for about 13.2% of the total circulating supply. These tokens were moved through intermediary wallets associated with a Binance deposit wallet, coinciding with a significant drop in the token’s market value.
Notably, neither the Neo Foundation (NF) nor Neo Global Development (NGD) typically comment on price action or market activity. However, this unusual series of events led Neo to release detailed research to dispel speculation that someone directly associated with the project was orchestrating these token transfers.
In a statement to the community, the Neo team stressed that neither the NF nor NGD, including the project’s founders and other team members, were involved in instigating or influencing these transactions. They further clarified, “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 large-scale token movement originated from a wallet that had been accumulating NEO and GAS on Neo Legacy between 2017 and 2021. This wallet reportedly used fund consolidation tactics from several addresses, including a known Binance hot wallet and wallets believed to be owned by centralized exchanges.
On Sep. 7, 2021, this wallet transferred 11,145,525 NEO from Neo Legacy to N3, receiving 11,256,930 NEO via the Token Migration Incentive Program. This wallet, referred to as “Neo N3 Wallet 1,” then transferred its entire balance to “Neo N3 Wallet 2” on Sep. 17, 2021. The latter wallet voted for Neo SPCC as a Neo Council candidate, bolstering Neo SPCC’s position among the Top 7 consensus nodes, a position it held for several years.
According to Neo’s research, NEO was gradually distributed from Neo N3 Wallet 2 to a series of associated wallets, ultimately ending up in a Binance deposit wallet. As a result of these transfers, all tokens previously used to support Neo SPCC have been relocated. At the time of writing, Neo SPCC has dropped out of the Top 21 consensus candidates and is now ranked 22nd, backed by 162,996 NEO.
Neo highlighted that the information unveiled pertains solely to on-chain activity. While the timing of the transfers correlates with a significant drop in NEO’s market value, the team noted there’s no on-chain data confirming that sales occurred on custodial exchanges. As such, any connection between the token transfers and the price drop is purely speculative at this point.
Reiterating its commitment to transparency, Neo pledged to share further updates with the community as new information emerges. In addition, Neo founder Da Hongfei announced, “Neo Foundation is preparing a contingency plan to address the ongoing market turmoil.” The full announcement can be found at [link].
