YZi Labs Pushes for Board Overhaul at CEA Industries

YZi Labs, an investment vehicle formerly known as the family office of Binance founder Changpeng Zhao, has launched an aggressive campaign to take control of CEA Industries, the publicly traded firm attempting to build the world’s most extensive BNB treasury. In a regulatory filing, the firm stated it is seeking to cancel all bylaw changes made since July, expand the size of the board, and install its own slate of director nominees. YZi argued that these steps are necessary to halt what it described as the “ongoing destruction of stockholder value” and to ensure the company’s alignment with investors’ best interests. If a majority of shareholders approve this move, it would grant Zhao-linked YZi significant influence over the company’s strategic direction and its ambitious BNB acquisition strategy.

CEA Shares Collapse Despite BNB Treasury Pivot

CEA’s stock has experienced a dramatic reversal following its pivot into cryptocurrency. Shares initially surged 550% on July 28, reaching a peak of $57.59, after the Canadian vape manufacturer announced its plans to transform into a major BNB treasury vehicle. However, this momentum has since evaporated. The stock has plunged approximately 89% from its peak, closing Monday at $6.47, and has declined more than 20% year-to-date, trading below its pre-pivot price. The company had previously touted a $500 million PIPE investment, partly backed by YZi Labs, intended to accelerate its BNB strategy. This pivot also led to the appointment of 10X Capital’s David Namdar as CEO and the addition of several 10X executives to the board. In October, YZi Labs announced its support for 10X Capital’s establishment of the BNB Treasury Company.

YZi Criticizes Leadership and Suggests CEO Change

In its filing, YZi expressed criticism of CEA’s management, citing slow investor communications and minimal marketing efforts. YZi contended that stakeholders have been left uninformed despite the high-stakes treasury strategy. Furthermore, YZi accused CEO David Namdar of lacking “devotion and loyalty” to the company, alleging that he had publicly promoted other crypto-focused treasury ventures. YZi suggested that a reconstituted board should assess whether CEA requires new leadership at the executive level.