CEA Industries, the largest publicly traded BNB treasury company in the United States, which now operates as BNB Network Company (BNC), has issued a statement directly addressing the warning YZi Labs put out after accusing the firm’s current management of attempting to go back on their agreement.
CEA Industries has revealed steps it has taken to de-escalate the crisis, as YZi Labs now wants the company to make several concessions if it wants the partnership to remain.
In the statement issued by CEA Industries Inc., which manages the world’s largest corporate treasury of BNB, the company acknowledges recent shareholder communications by YZi Labs Management Ltd., including the press release it issued on December 3, 2025.
However, the company denied the statements in the press release, claiming it remains committed to becoming the world’s largest BNB treasury company.
It claimed that since the July PIPE investment, BNC has never considered an alternative token for the company’s digital asset treasury strategy, nor launched competitive DAT ventures.
CEA Industries is handling the crisis
YZi’s press release came two days after it filed a Preliminary Consent Statement, which proposes to expand and reconstitute the board, which is made up of a majority of independent directors.
According to CEA Industries, they conducted an extensive months-long search process, which led to the appointment of independent directors Annemarie Tierney and Carly E. Howard, experienced board members, who, between them, have a litany of relevant digital asset legal and regulatory experience, as well as significant public company corporate governance knowledge.
The company in the statement also reiterated how much it values its relationship with YZi Labs and claims it is committed to engaging in constructive discussions, as well as with other shareholders and partners, all with the aim of building long-term shareholder value.
To achieve that, the firm’s board has reportedly reached out to YZi to create an open line of dialogue regarding YZi’s concerns and potential solutions.
Why was YZi Labs concerned about CEA Industries?
YZi Labs announced that it had issued a notice to 10X Capital, citing mismanagement, value-destructive actions, and threatened violations of contractual agreements, just a few months after the two parties partnered on a $500 million private investment in the company.
Things started going sideways in late November when Yzi Labs filed a preliminary consent statement with the SEC, officially launching a proxy fight seeking to overhaul the board, which it accused of planning to pivot away from accumulating BNB tokens despite representations made to investors during the summer financing round.
YZi Labs contended that the company management had informed market participants of plans to abandon the BNB ecosystem for alternative cryptocurrencies such as Solana, contradicting the investment thesis that attracted backers.
YZi Labs also claimed that the recent moves by 10X Capital in collaboration with the current CEO of BNC have negatively impacted the company’s shares, adding that the BNC’s management, most of whom it claims were appointed by 10X, have misled shareholders and significantly damaged shareholder value via various actions.
In its press release, YZi Labs claimed the combined impact of both accused parties has “led to severe underperformance of BNC’s stock relative to peers, trading approximately 19% below the pre-PIPE announcement level and 87% below the post-announcement level.”
Cryptopolitan reported earlier in the week when Yzi Labs filed a preliminary consent statement with the SEC seeking stockholder support to expand the board and elect additional directors, and the company demands that “10X, and its hand-picked directors and CEO, amend the BNC AMA and release to BNC’s shareholders the fundamental information expected of a publicly traded DAT, including an operational plan, an asset-management methodology, a risk framework, a reporting package, a personnel overview, and evidence of systems, controls, and infrastructure.”
It also wants BNC shareholders to be provided with timely updates that reflect the amount of “BNB acquired and held, the number of outstanding shares of BNC, and other critical and market-standard information customarily disclosed by other DATs.”
A written confirmation from 10X that it will comply with the BNB treasury strategy, as represented to investors, and “that it has not improperly disposed of BNB assets,” was also required by YZi Labs.
