CZ and YZi Labs seek to restructure the management of BNB Treasury Company CEA Industries

According to Decrypt, Binance co-founder Zhao Changpeng (CZ) and his investment firm YZi Labs submitted a consent statement to the SEC, seeking significant reforms to the board and management of the publicly listed BNB treasury company CEA Industries (BNC). The statement calls for BNC shareholders to support four proposals, including expanding the board size, electing directors nominated by YZi Labs, and abolishing corporate charter provisions that have not been effective since July.

YZi Labs holds approximately 2.1 million shares of BNC (about 5% of the outstanding shares, valued at around $14 million) and participated in the company's $500 million PIPE financing this summer. YZi Labs accused CEA CEO David Namdar and director Hans Thomas of actively fundraising for other digital asset treasury companies during their tenure at BNC, believing that the management should be directly accountable for the company's poor performance.

BNC's stock price plummeted 92% from a high of $82.88 following the announcement of the treasury plan in July to $6.47.