YZi Labs has escalated its dispute with CEA Industries (BNC), accusing 10X Capital of hiding a significant ownership stake in BNC. New filing evidence suggests that the stock holdings of 10X Capital, its affiliates, and related individuals have collectively crossed 5% of BNC’s outstanding common shares. The exercise of 2,376,236 shares reportedly aligns mostly with warrants previously disclosed by 10X Capital’s affiliates.
CEA Industries pivoted in mid-2025 to become the world’s largest publicly traded corporate treasury focused on $BNB, a move facilitated by a $500 million PIPE deal led by 10X Capital with backing from YZi Labs. It positioned BNC as an institutional gateway for US-based investors to gain access to the $BNB ecosystem, with plans to allocate the majority of funds to $BNB holdings, subject to market conditions. The partnership went sideways in late 2025, and around that time, YZi Labs accused 10X Capital and BNC management of strategic drift.
YZi Labs reportedly terminated the agreement on December 11, 2025, waiving future fees; however, BNC’s board nevertheless blamed it for delaying AMA revisions and demanded full disclosure of its terms. YZi Labs has denied the claims and labeled them a cheap PR smear campaign. The firm is reportedly treating it as an attempt by the board to hijack the narrative, hoping to hide their failure to properly manage the $BNB treasury.
CEA Industries has raised allegations of a secret side agreement between YZi Labs and 10X Capital. The agreement was drafted in 2025 to divert a portion of BNC’s asset management fees to YZi Labs without defined services.
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