A new development has emerged regarding CEA Industries (BNC), a $BNB treasury company funded by YZi Labs, the investment arm of Binance, the world’s largest cryptocurrency exchange.
This development comes after a long-standing governance dispute between YZi Labs, the company’s largest investor, and the CEA board of directors.
As a result of this development, Hans Thomas, a CEA Industries executive and founding partner of 10x Capital, resigned, or was forced to resign.
According to a company filing with the SEC, Hans Thomas resigned from his position at the company effective March 20.
This move comes at a time when YZi Labs (formerly Binance Labs) is pressuring the CEA to make changes in its governance.
YZi Labs has repeatedly expressed concerns that the asset management agreement between CEA and 10X Capital Asset Management, where Thomas is also CEO, negatively impacts shareholder value. As a reminder, in February, YZi Labs (formerly Binance Labs) announced that it believed 10X Capital and its affiliates violated disclosure rules regarding their shares in BNC.
However, the company stated that Thomas’s departure was not due to any internal disagreements regarding operations, policies, or practices.
As Thomas left the company, YZi Labs also filed a notification with the SEC announcing its intention to add seven new members to the board of directors, which had been reduced to six by Thomas’s resignation.
With this move, CZ’s YZi Labs aims to gain complete control over the $BNB treasury company.
*This is not investment advice.
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