YZi Labs has landed the latest punch in its public dispute with CEA Industries, aka BNC, as the investment firm backed by CZ publicly accused 10X Capital of hiding a significant ownership stake in BNC.
According to a recent article circulated via X, YZi Labs has pointed out additional filing evidence suggesting that the stock holdings of 10X Capital, its affiliates, and certain related individuals have collectively crossed 5% of the firm’s outstanding shares of common stock.
Fresh round of accusations from YZi Labs
In its statement, YZi Labs claims that the 2,376,236 shares recently exercised align mostly with the warrant holdings previously disclosed by 10X Capital’s affiliates. This has raised eyebrows because, under SEC rules, any entity or group acquiring over 5% of a company’s stock needs to file a Schedule 13D to let the public know.
As far as YZi Labs is concerned, 10X Capital and its affiliates are operating as a shadow group, wielding undisclosed influence to entrench the current board without giving in to the transparency required of major stockholders.
According to YZi Labs, if 10X Capital and these inside participants contend that no such “group” existed, they need to explain to stockholders how the tools used to deploy hostile entrenchment tactics do not constitute concerted action requiring SEC disclosure.
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YZi Labs and CEA Industries continue to trade accusations
CEA Industries was originally a cannabis-linked company, but it pivoted in the middle of 2025 to become the world’s largest publicly traded corporate treasury focused on $BNB.
That pivot was facilitated by a $500 million private investment in public equity (PIPE) deal that closed in August 2025, led by 10X Capital as the asset manager, with backing from heavy hitters like YZi Labs.
It positioned BNC as an institutional gateway for US-based investors to gain access to the $BNB ecosystem, and there were plans to allocate the majority of the funds to $BNB holdings, subject to market conditions.
The partnership went sideways in late 2025, and around that time, we reported that YZi Labs had accused 10X Capital and BNC management of strategic drift. YZi Labs, in an official release, specifically alleged BNC’s CEO David Namdar had at a November 2025 industry conference claimed that BNC had contemplated switching to other crypto assets, like Solana.
“Ultimately, stockholders deserve to be represented by a Board that is committed to the token strategy in which they invested,” the official statement read.
As a result, YZi Labs tried to expand the board in an attempt to install its own directors as executives, but the BNC board launched a series of defensive measures, making that avenue difficult.
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These included the infamous poison pill shareholder rights plan and bylaw amendments, moves YZi Labs tagged unfriendly to stockholders.
Secret side agreement compounds tensions
CEA Industries has raised allegations of a secret side agreement between YZi Labs and 10X Capital drafted in 2025 to divert a portion of BNC’s asset management fees to YZi Labs without defined services.
YZi Labs reportedly terminated the agreement on December 11, 2025, waiving future fees; however, BNC’s board nevertheless blamed it for delaying AMA revisions and demanded full disclosure of its terms.
YZi Labs has denied the claims and labeled them a cheap PR smear campaign. The firm is reportedly treating it as an attempt by the board to hijack the narrative, hoping to hide their failure to properly manage the $BNB treasury.
