Binance cryptocurrency exchange’s investment arm, YZi Labs (formerly Binance Labs), has accused BNC’s (CEA Industries) board of directors of failing shareholders, obstructing reforms, and drifting towards a loss of strategic direction.
In a statement released on social media, YZi Labs said the company is reviewing BNC’s recent actions from a legal and corporate governance perspective.
According to the statement, YZi Labs argues that BNC’s actions against its shareholder group formation initiative and proxy voting process are detrimental to shareholder interests. YZi Labs characterizes BNC’s activation of the “poison pill” defense mechanism and amendments to its articles of incorporation as moves to delay and hinder shareholders from exercising their rights through written consent. The company argues that these arrangements impose unnecessary restrictions and procedural burdens beyond what is required by Nevada state law.
YZi Labs stated that the BNC Board of Directors took these steps to protect its own position despite previous warnings. YZi claimed they warned the board about potential legal risks and breaches of fiduciary responsibilities, but instead of acknowledging its mistakes, the board chose to restrict shareholder rights. This, it said, indicates that the board is aware of its lack of shareholder support.
The company also stated that numerous shareholders share YZi Labs’ concerns regarding BNC’s strategic shift and its decision to distance itself from the BNB ecosystem, and that they were “shocked” by these developments.
YZi Labs also refuted BNC’s statement that it “never considered alternative tokens as part of its digital asset reserve strategy and never launched a competing digital asset reserve business.” The company stated that this contradicts comments made by BNC CEO David Namdar at an industry conference in November 2025, where he said BNC was considering a shift to different crypto assets like Solana. Furthermore, the active promotion and fundraising activities of other digital asset reserve projects by Namdar and board member Hans Thomas during their leadership roles at BNC raised serious questions for shareholders.
*This is not investment advice.