CZ-Backed YZi Labs Intensifies Legal Battle Over CEA’s ‘Poison Pill’ and BNB Treasury Plan
In a growing corporate fight, YZi Labs, an investment firm backed by Binance founder Changpeng “CZ” Zhao, has stepped up its of CEA Industries’ recent defensive moves. The company says the board used a “poison pill” tactic and changes to the bylaws to protect its own interests and harm shareholders’ rights.
YZi Labs difficultys CEA’s Ways to Defend Itself
On Monday, YZi Labs sent a to the US Securities and platform Commission outlining its reasons for opposing the deal. Two days later, the company made a public statement on X. The company is closely reviewing CEA’s new stockholder rights plan, also known as a “poison pill.”
This approach makes hostile takeovers very expensive. Also, YZi pointed out changes to the company’s bylaws that make it harder for shareholders to act via written approval.
According to YZi, these steps impose “unnecessary constraints and procedural burdens” beyond what is required by Nevada law. The company said that these measures might further fragileen voting rights, potentially making the board liable for breaching its fiduciary duties. As part of its plan, YZi is running a campaign to get people to agree to let CEA’s board grow and add additional directors.
Disagreements About BNB Treasury Commitment
In addition to governance issues, YZi Labs has CEA Industries’ commitment to its Binance Coin (BNB) (DAT) concept. The company didn’t believe CEA’s December 4 statement, in which the company said it “has never considered an alternative token” for its DAT or looked into other business opportunities.
YZi said that CEO David Namdar made comments at an industry meeting in November 2025 that suggested he was looking into other cryptocurrencies, such as .
According to YZi, this goes against what CEA said. Also, the company was concerned that Namdar and director Hans Thomas were promoting and soliciting funds for other DAT projects, which may be a difficulty for shareholders because it didn’t align with CEA’s -focused approach.
Cea’s Answer and The Ongoing difficultys
In a December 4 press release, CEA Industries reiterated its support for the and stated that it had neither initiated nor planned any competing DAT activities.
The firm said that the poison pill and bylaw changes were intended to protect the interests of all shareholders and preserve the company’s value over time. They also said they were willing to talk to shareholders.
YZi Labs has also said that CEA is poor for delaying its annual conference, which usually takes place in December, until 2025. The company told the board not to “manipulate behaviour” when setting the schedule since it saw the meeting as a key chance for shareholders to change the makeup of the board.
CEA Industries hasn’t said anything else about YZi’s most recent claims about entrenchment, meeting delays, or token alternatives. The company didn’t respond when we tried to reach them.
A YZi Labs spokesman told Cointelegraph that the company’s top priority remains protecting the interests of CEA Industries (ticker: BNC) shareholders and supporting “the integrity and the value of the BNB ecosystem” in accordance with SEC rules. The spokesman added, “We appreciate Cointelegraph and the community’s continued interest in our public announcements and .”
This argument shows that there are largeger difficultys in the crypto world when it comes to managing companies and in unstable markets. As YZi moves forward, stakeholders are waiting to view whether shareholder votes or regulatory scrutiny will yield answers.
