YZi Labs accuses BNB Treasury Company CEA Industries asset management firm 10X Capital of "mismanagement and threatening to abandon the BNB strategy."

According to the official announcement, BNB treasury company CEA Industries, Inc. (NASDAQ: BNC) significant shareholder YZi Labs Management Ltd. has issued a formal notice and correction request to the company's asset management party 10X Capital Asset Management LLC.

YZi Labs accuses 10X Capital of mismanagement and lack of transparency, threatening to violate 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 like Solana, which contradicts the company's previous commitment to PIPE investors of $500 million for "establishing the company's BNB treasury operations."

YZi Labs demands that 10X Capital confirm in writing by December 5 that it will comply with the BNB treasury strategy and will not improperly dispose of BNB assets. It also points out that under 10X Capital's management, BNC's stock performance has significantly lagged behind its peers, dropping about 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 and appoint independent directors.