YZi Labs, the family office of Binance founder Changpeng Zhao (CZ), has launched an attempt to take control of the BNB treasury company it helped fund, CEA Industries (BNC).
In a recent one regulatory filingYZi Labs is seeking to cancel the company’s existing bylaws, expand its board, and install its own “highly qualified nominees as directors.”
It cited the “destruction” of shareholder value and said CEA’s shares had underperformed the BNB token it manages.
YZi Labs also claimed that the company’s management has been slow to provide updates to investors and has made “little to no media or marketing efforts” to promote the company.
CEA stock is imploding
The filing follows a sharp decline in CEA’s share price in the second half of this year. Shares of the Canadian vape company soared 550% on July 28 when it announced its plan to create the world’s largest BNB treasury company.
Since then, the company’s share price has fallen approximately 89%. It closed yesterday with a loss of more than 10%, according to data from Google Finance.
CEA share price (Source: Google Finance)
Meanwhile, the price of BNB has increased by more than 30% over the same period. This is after the crypto’s price fell more than 39% since hitting its all-time high (ATH) of $1,370.55 on October 13.
YZi Labs is calling for a complete overhaul of CEA management
As part of CEA’s crypto pivot earlier this year, 10X Capital CEO David Namdar was installed as CEO of the company, joining several other 10X Capital executives on the board.
YZi Labs had helped finance the company’s $500 million private investment in public equity (PIPE) deal, which closed in August. Proceeds from this deal would be used to “build BNB Chain’s largest publicly traded digital asset treasury strategy in the world,” CEA said at the time.
Dear our esteemed community,
YZi Labs has submitted a preliminary consent decree to the board of CEA Industries Inc. (BNC) to expand.
As a long-term partner of the investors in our network, we believe that strong governance, transparent communication and experienced supervision are essential… https://t.co/GrZyeETiUH
— YZi Labs (@yzilabs) November 27, 2025
CZ’s family office subsequently accused Namdar of a “lack of commitment and loyalty” towards the company, claiming he was promoting other crypto treasury companies.
YZi’s “Aggressive Consent Campaign” is net positive
10X Research shared its thoughts on the matter in a recent email, saying that the “aggressive consent campaign” launched by YZi will lead to a “net positive” for CEA.
The company said there are two likely outcomes: either YZi achieves an outright victory or there is a negotiated resolution.
10X Research said there is a 30% chance of the first scenario playing out, which it said will be “strongly bullish” for CEA’s stock price.
Meanwhile, the company has a 55% chance that the second scenario will be the outcome. If this is the case, 10X Research also believes this will be a “strongly bullish” outcome for the company.
Both outcomes “push the company toward stronger governance, better execution and closer alignment with BNB performance,” according to 10X Research.
It added that either path will introduce new oversight, improved disclosure and potential changes in management or compensation structure that “the market typically rewards.”
The company added that a bearish scenario could also arise in which YZi Labs fails to obtain majority approval from CEA shareholders. However, the company said this is “the least likely” outcome, estimating only a 15% chance of this happening.
10X Research also said that the potential downside of the third scenario is lower than the upside presented in the first two scenarios.
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