YZi Labs has delivered the latest punch in its public spat with CEA Industries (also known as BNC), as the CZ-backed investment firm publicly accused 10X Capital of hiding significant ownership in BNC.
According to a recent article distributed via X, YZi Labs pointed to additional filing evidence suggesting stock ownership by 10X Capital, its affiliates, and certain related individuals. crossed 5% of the company’s outstanding common stock.
New accusations from YZi Labs
YZi Labs claimed in a statement that the 2,376,236 recently exercised shares are broadly consistent with warrant holdings previously disclosed by affiliates of 10X Capital. This caused some eyebrows to be raised. This is because, under SEC rules, any company or group that acquires more than 5% of a company’s stock must file a Schedule 13D. Let me of The general public knows.
As far as YZi Labs is concerned, 10X Capital and its affiliates are operating as a shadow group, using their undisclosed influence to entrench the current board without compromising the transparency required of major shareholders.
According to YZi Labs, if 10X Capital and these internal participants claim that no such “group” existed, they will need to explain to shareholders that the tools used to deploy hostile entrenchment tactics do not amount to concerted action requiring SEC disclosure.
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YZi Labs and CEA Industries continue to exchange accusations
CEA Industries was originally a cannabis-related company, but in mid-2025 it pivoted to become the world’s largest public company treasury focused on cannabis-related companies. $BNB.
This transformation was facilitated by a $500 million private equity investment (PIPE) transaction completed in August 2025, led by asset management firm 10X Capital, with support from leading firms like YZi Labs.
Positioned BNC as the institutional gateway for US-based investors to access BNC. $BNB There was a plan to allocate the majority of the funds to the ecosystem. $BNB The amount held is subject to market conditions.
The partnership took a turn in late 2025, when we reported that YZi Labs accused 10X Capital and BNC’s management of strategic deviation. In its official release, YZi Labs specifically claimed that BNC CEO David Namdar claimed at an industry conference in November 2025 that BNC was considering switching to other crypto assets like Solana.
“Ultimately, shareholders have the right to be represented by a board of directors dedicated to the token strategy in which they have invested,” the official statement reads.
As a result, YZi Labs attempted to expand its board of directors in an effort to install its own directors on its board, but that path was made difficult by a series of defensive measures taken by the BNC board.
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These include the infamous poison pill shareholder rights plan and ordinance amendments that moved the YZi Labs tagofFriendly to shareholders.
Tensions rise over secret agreement
CEA industry raised allegations of a secret agreement between YZi Labs and 10X Capital in the 2025 draft to divert a portion of BNC’s asset management fees to YZi Labs without defined services.
YZi Labs reportedly terminated the contract on December 11, 2025 and waived future fees. However, BNC’s Board of Directors nevertheless accused BNC of delaying the revision of the AMA and demanded full disclosure of its terms.
YZi Labs has denied the claims and branded them a cheap PR smear campaign. The company is reportedly treating this as an attempt by the board to hijack the story and wants to cover up the board’s lack of proper control. $BNB Ministry of Finance.
