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Binance founder Changpeng Zhao\u2019s YZi Labs has launched a bid to stack the board of a BNB buying company it helped to bankroll with its own nominees, citing \u201cdestruction\u201d of stockholder value.\u00a0<\/p>\n
In a regulatory filing<\/a> on Monday, YZi Labs said it wants to cancel all of the company\u2019s bylaw changes since July, expand the size of CEA\u2019s board and elect \u201cour highly-qualified nominees as directors.\u201d<\/p>\n YZi told shareholders that the measures \u201care necessary to address the continued destruction of stockholder value at BNC and to ensure that the Company is being run in a manner consistent with your best interest.\u201d<\/p>\n If the majority of outstanding shareholders agree, then YZi, which formerly marketed itself as Zhao\u2019s<\/a> family office, would essentially wrest control of the world\u2019s largest public BNB (BNB) treasury company.<\/p>\n BNB is close to Zhao and Binance, which reportedly owns the majority<\/a> of the supply.\u00a0<\/p>\n Shares in CEA Industries (BNC) have dropped around 89% since its peak of $57.59 on July 28, the same day the Canadian vape company\u2019s stock surged 550%<\/a> on its plans to become the largest BNB treasury company.<\/p>\n It ended trading on Monday at $6.47, down more than 10% on the day. The stock is down over 20% so far this year, trading below its price before it pivoted to crypto.<\/p>\n YZi helped bankroll CEA\u2019s $500 million private investment in public equity (PIPE) deal that closed in August, which CEA pitched was to help \u201cestablish the largest publicly listed BNB Chain digital asset treasury strategy in the world.\u201d<\/p>\n CEA\u2019s crypto pivot saw investment firm 10X Capital\u2019s CEO, David Namdar, installed as CEO, and multiple 10X Capital executives joining CEA\u2019s board.<\/p>\n However, in its latest filing, YZi claimed that CEA\u2019s management has been slow to provide investor updates and has made \u201clittle to no media or marketing efforts\u201d to promote the company.<\/p>\n Related: <\/strong><\/em>DATs bring crypto\u2019s insider trading problem to TradFi: Shane Molidor<\/strong><\/em><\/a><\/p>\n YZi also accused Namdar of a \u201clack of devotion and loyalty\u201d to CEA, claiming he had promoted other crypto treasury companies, and floated that the new board \u201cshould explore the selection of a new CEO.\u201d<\/p>\n CEA Industries did not immediately respond to a request for comment.<\/p>\n BNB, a token deeply tied to Binance that offers perks to BNB holders on its platform, is trading at a three-month low of $829.<\/p>\n It has lost almost 40% since reaching an all-time high of $1,367 in mid-October, but has fallen in tandem with the broader crypto market due to broader macroeconomic concerns.<\/p>\n <\/p>\n Despite its recent decline, BNB is up 17.8% so far this year and has traded slightly down over the last 24 hours.<\/p>\nCEA shares have tumbled since YZi\u2019s backing<\/h2>\n
BNB trades low, but outperforms CEA<\/h2>\n