YZi Labs escalates board battle over directors’ ties to 10X Capital

The company cited SEC filings showing the ex-executive was previously vice chairman of 10X and disputed claims of board independence.

YZi Labs has escalated its public dispute with BNC’s board by questioning the independence of a former director accused of ties to the company’s asset manager, 10X Capital.

This revelation comes amid accusations that the group is engaging in entrenchment and trying to silence the voices of investors.

Former BNC director associated with 10X Capital

In his final statement shared on At the center of the claims is Russell Read, who recently resigned from the board of directors of CEA Industries Inc., the corporate entity associated with BNC.

In a Dec. 30 8-K filing, the company described the group from which Read resigned as independent, saying his departure followed his acceptance of a new role that required him to step down from outside boards. The document also includes a statement from him in which he praised the entity for its “diligent and independent oversight.”

However, YZi Labs be to those same SEC disclosures to show that the former director was previously vice chairman of 10X Capital. According to the venture capital firm, this relationship directly challenges claims of independence and raises concerns about board oversight.

In addition, YZi Labs alleged that the asset manager structured a 20-year agreement that allows it to continue collecting fees even after termination, arguing that such terms increase potential conflicts of interest and merit closer shareholder scrutiny.

YZi Labs is pushing to expand the board

The governance clash is fueled by a fundamental disagreement over BNC’s direction. As CryptoPotato previously reported, YZi Labs and other investors backed BNC specifically for its focus on BNB Chain-related treasury strategies.

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However, recent internal discussions have suggested that there may be a shift to other digital assets, causing concern. YZi Labs has pointed to public comments from BNC’s CEO in November 2025 about considering assets like Solana as evidence of this strategic drift.

“We remain committed to protecting BNC shareholder rights and maintaining the integrity of the BNB ecosystem,” wrote the company.

The new questions about board independence add a new layer to YZi Labs’ change campaign. The company has filed a formal consent decree to expand BNC’s board and install its own nominees, a list that includes former U.S. Senator Max Baucus and blockchain figure Matthew Roszak. YZi Labs maintains that its goal is to protect shareholder rights and maintain the integrity of the BNB ecosystem on which it says BNC is built.

The outcome of this battle will be a test of shareholder activism in the crypto corporate sphere and could determine whether BNC remains connected to the BNB ecosystem or charts a new course. For now, YZi Labs is betting that allegations of conflicting governance will convince other shareholders to support its call for a boardroom overhaul.

As of January 12, the venture capital firm reported that it directly owns 2,150,481 shares of common stock and additional shares underlying pre-funded, stapled and strategic advisor warrants.