CZ-Linked YZi Labs Moves to Replace Board at Struggling BNB Treasury Firm

YZi Labs, an investment firm associated with Binance founder Changpeng Zhao, has launched an effort to reshape the leadership of CEA Industries, the company that previously positioned itself as the world’s largest publicly traded BNB treasury holder. In a regulatory filing submitted Monday, YZi asked shareholders to support sweeping board changes, including reversing corporate bylaw amendments made since July, expanding the board, and appointing its preferred candidates as new directors.

The move represents a direct attempt to seize control of CEA, a company whose fortunes rapidly deteriorated after its high-profile pivot to BNB holdings. YZi argued that the restructuring is necessary to halt what it calls a persistent decline in shareholder value and to ensure the business is run in a way that aligns with investor interests.

CEA’s stock illustrates the scale of the downturn. Shares peaked at $57.59 on July 28, the same day the company announced its plan to become a major BNB treasury vehicle. The market reaction initially sent the stock soaring more than 550 percent. But since then, the momentum has completely reversed. CEA closed Monday at $6.47, down more than 10 percent on the day and nearly 89 percent below its peak. Shares now trade lower than they did before the company entered the crypto sector.

YZi Labs was a key backer of CEA’s $500 million private investment in public equity deal, finalized in August. The company promoted the raise as the foundation for establishing the largest publicly listed BNB Chain treasury strategy. Soon after, CEA appointed 10X Capital CEO David Namdar as chief executive, with several 10X executives taking seats on the board.

In its latest filing, however, YZi criticized CEA leadership for providing limited communication to investors and failing to engage in meaningful marketing or public outreach. The firm also accused Namdar of openly supporting other crypto-treasury companies, raising questions about his commitment to CEA. YZi suggested that a newly composed board should consider replacing the CEO entirely.

CEA did not issue a public response to the accusations.

While CEA struggles, BNB itself has seen its price fall but remains more resilient than the stock. The token recently traded around $829, down almost 40 percent from its October all-time high amid broad market weakness. Even so, BNB is still up 17.8 percent this year.

CEA currently holds over 515,000 BNB, purchased at an average cost above its current price, pushing the company’s modified net asset value ratio to 0.79x. This signals that investors now value the firm at a steep discount relative to the crypto assets it holds — a sign that confidence in management has eroded significantly.