YZi Labs accuses BNB treasury company CEA Industries and asset manager 10X Capital of "mismanagement and threatening to abandon the BNB strategy"

ChainCatcher News, according to an official announcement, BNB treasury company CEA Industries, Inc. (NASDAQ: BNC) major shareholder YZi Labs Management Ltd. has issued a formal notice and correction request to the company’s asset manager 10X Capital Asset Management LLC.

YZi Labs accuses 10X Capital of mismanagement and lack of transparency, threatening to breach the strategic services agreement with YZi Labs. The core dispute lies in 10X Capital’s threat to abandon the BNB treasury strategy in favor of investing in other cryptocurrencies such as Solana, which contradicts the company’s previous commitment to PIPE investors that $500 million would be used to “establish the company’s BNB treasury operations.”

YZi Labs requires 10X Capital to provide written confirmation by December 5 that it will adhere to the BNB treasury strategy and has not improperly disposed of BNB assets. It also points out that under 10X Capital’s management, BNC’s stock price has significantly underperformed its peers, dropping approximately 19% from pre-PIPE announcement levels and 87% from post-announcement levels.

YZi Labs has submitted a preliminary consent solicitation to the U.S. Securities and Exchange Commission, seeking to expand the board of directors and appoint independent directors.