Crypto Drama: YZi Labs Exposes Hidden 10X Capital Stake in BNB Treasury Giant CEA Industries

A storm is brewing in the crypto space as YZi Labs, an investment firm reportedly backed by Binance’s CZ, has accused 10X Capital of secretly holding a significant ownership stake in CEA Industries, widely known as BNC. This explosive claim, backed by filing evidence, has ignited a fierce clash over transparency, governance, and the strategic future of what stands as the world’s largest publicly traded corporate treasury focused on BNB (Binance Coin).

• Hidden Ownership: YZi Labs alleges 10X Capital and affiliates hold over 5% of BNC’s common stock without required SEC disclosure.
• Strategic Divide: Disagreement erupts over BNC’s potential shift from BNB to other assets like Solana.
• Boardroom Standoff: Defensive maneuvers like poison pills thwart YZi Labs’ push for influence.

The Hidden Stake: A Transparency Scandal

At the heart of this BNB treasury controversy lies a damning accusation. YZi Labs claims that 10X Capital, alongside its affiliates, controls more than 5% of BNC’s outstanding common stock, a threshold that triggers mandatory disclosure under US securities law. SEC rules are unambiguous: if you own over 5% of a company’s shares, you must file a Schedule 13D, a public document that alerts investors to significant influence or control. Failing to do so, as YZi Labs alleges in their exposé on 10X Capital’s hidden stake, isn’t just a bureaucratic oversight—it’s a deliberate veil over who’s really steering the ship. If true, this opacity could mislead shareholders about the true power dynamics at play within BNC, a company already navigating choppy waters.

For context, BNC wasn’t always a crypto heavyweight. Originally tied to the cannabis industry, CEA Industries pivoted in mid-2025 to become a pioneering force in the cryptocurrency world, focusing exclusively on BNB as a corporate treasury. With a staggering $500 million private investment in public equity (PIPE) deal led by 10X Capital and supported by YZi Labs, BNC emerged as a regulated gateway for US investors to gain exposure to the BNB ecosystem without directly holding the token. BNB, for the uninitiated, is the native cryptocurrency of Binance, the world’s leading crypto exchange by volume. It’s used to pay trading fees and power decentralized applications on the Binance Smart Chain, a blockchain rivaling Ethereum. This pivot wasn’t just a corporate rebrand—it signaled a growing trend of institutional money pouring into crypto via structured, publicly traded vehicles.

Strategic Drift: BNB to Solana?

The feud isn’t just about hidden stakes; it’s a battle over BNC’s very identity. YZi Labs has accused BNC’s management, led by CEO David Namdar, of considering a pivot away from BNB to other cryptocurrencies, notably Solana. This isn’t idle gossip—Namdar hinted at exploring Solana during an industry conference in late 2025, a statement that sent shockwaves through BNC’s investor base. For those new to the space, Solana is a high-speed blockchain often seen as a competitor to Ethereum, offering faster transactions and lower costs. Its appeal to a treasury like BNC could lie in diversification or tapping into Solana’s thriving DeFi (decentralized finance) ecosystem, where apps for lending and trading operate without intermediaries.

YZi Labs, however, sees this as a betrayal. Their position is crystal clear: investors backed BNC for a BNB-focused treasury, not a speculative sampler of altcoins. As they stated,

“Ultimately, stockholders deserve to be represented by a Board that is committed to the token strategy in which they invested.”

It’s a compelling point. BNC was pitched as a direct line to BNB’s growth, a token deeply tied to Binance’s ecosystem. A shift to Solana risks alienating those who bought into that vision. But let’s play devil’s advocate for a second—could BNC’s leadership simply be adapting to a volatile market? Crypto evolves fast, and new blockchains like Solana sometimes outshine older ones in niche areas. Ignoring such shifts could doom a treasury to irrelevance. Still, the lack of transparent communication from Namdar’s team smells of disregard. If they’re serious about straying from BNB, they owe shareholders a rock-solid justification, not vague conference musings.

Boardroom Power Plays: Fortresses and Poison Pills

The conflict gets uglier in the boardroom. YZi Labs attempted to expand BNC’s board to install their own directors, likely aiming to realign the company with its BNB roots. But they slammed into a wall of resistance. BNC’s leadership deployed textbook corporate defenses, including a poison pill shareholder rights plan—a tactic that floods the market with new shares to dilute ownership and make hostile takeovers nearly impossible. They’ve also amended bylaws to tighten their grip on power. This isn’t just a crypto squabble; it’s a Wall Street-style showdown, showing that even in blockchain’s rebellious realm, old-school financial warfare still rules the day.

Adding fuel to the fire is a murky claim of a secret side deal. BNC alleges that in 2025, YZi Labs and 10X Capital struck a clandestine agreement to divert asset management fees to YZi Labs without any defined services. For shareholders, this raises red flags—such fees are meant to cover legitimate operational costs, not pad hidden pockets. YZi Labs denies the accusation as a smear tactic and claims to have terminated any such arrangement by late 2025. Whether fact or fiction, this paints a picture of deep distrust among BNC’s key players. Frankly, it’s a messy debacle that makes you question if anyone’s hands are clean in this saga.

Market Ripples: BNB Ecosystem and Beyond

Zooming out, the instability at BNC could ripple far beyond its boardroom. As a flagship public treasury for BNB, any sign of faltering might dent confidence in Binance’s broader ecosystem, which has already faced its share of regulatory scrutiny. BNB’s price often mirrors Binance’s fortunes, and institutional investors could shy away if they sense chaos in a key vehicle like BNC. Volatility might follow, impacting retail holders and DeFi projects reliant on BNB. Worse, a poorly managed pivot or governance scandal could arm regulators with more reasons to brand crypto as a speculative wild west, tightening the screws on the entire industry.

As Bitcoin maximalists, it’s tempting to smirk at altcoin drama, but let’s not kid ourselves. BNC’s treasury model, if successful, could inspire similar Bitcoin-focused vehicles, bridging decentralized ideals with institutional capital. If it implodes amid infighting, that vision takes a hit, and skeptics gain ammo to dismiss crypto as a cesspool of greed. Plus, with CZ’s shadow over YZi Labs, one can’t help but wonder if this is less about principles and more about power grabs within Binance’s orbit. The clash over CEA Industries’ transparency issues and strategic direction isn’t just a sideshow—it’s a test of whether crypto can mature without sacrificing its core promise of openness.

Regulatory Spotlight: A Growing Pain for Crypto

This BNB treasury controversy also underscores a harsh reality: crypto’s collision with traditional finance brings baggage. SEC disclosure rules, like the Schedule 13D at the center of YZi Labs’ accusations, exist to protect investors in public markets. BNC’s pivot to a regulated entity was a bold step toward mainstream legitimacy, but it comes with strings—strings that 10X Capital may have sidestepped if these allegations hold water. As crypto entities like BNC increasingly adopt public structures, they’ll face sharper regulatory oversight. This isn’t just about one company; it’s a preview of the growing pains awaiting any blockchain project flirting with Wall Street.

Let’s be blunt: I’m all for decentralization disrupting the financial status quo, and I’m rooting for Bitcoin to lead that charge with altcoins like BNB filling their own niches. But I’ve got zero tolerance for corporate games masquerading as innovation. Whether it’s hidden stakes or shady fee deals, this kind of nonsense erodes trust. BNC, 10X Capital, YZi Labs—get your act together. Investors, both retail and institutional, deserve better than a petty power struggle. Crypto’s future hinges on accountability as much as it does on tech, and right now, this saga is failing that test.

Key Takeaways and Questions

• What is the core issue between YZi Labs and CEA Industries (BNC)?
  It’s a fight over transparency and strategy—YZi Labs accuses 10X Capital of hiding a 5%+ ownership stake in BNC, violating SEC disclosure rules, while slamming BNC’s potential shift from BNB to assets like Solana.
• Why does the SEC disclosure rule matter?
  SEC rules require a Schedule 13D filing for holdings over 5% to ensure investors know who wields significant control; dodging this can conceal major influence, potentially misleading shareholders.
• Is BNC abandoning its BNB focus?
  There’s no concrete evidence yet, but CEO David Namdar’s remarks about exploring Solana have sparked fears of strategic drift, frustrating investors like YZi Labs who backed a BNB-centric treasury.
• How intense is this boardroom conflict?
  Extremely—BNC’s board is using poison pills and bylaw changes to block YZi Labs’ push for representation, while allegations of secret fee deals deepen the mutual distrust.
• What could this mean for the BNB ecosystem?
  Instability at BNC, a major BNB treasury, risks shaking confidence in Binance’s token and ecosystem, potentially triggering price volatility and cooling institutional interest.
• How might this impact crypto’s mainstream adoption?
  A governance scandal or mismanaged pivot at BNC could fuel regulatory crackdowns and public skepticism, slowing crypto’s push into traditional finance despite its innovative potential.

Stepping back, this mess raises a nagging question: can crypto’s promise of transparency survive when even its biggest players seem to play by Wall Street’s dirtiest rules? As champions of decentralization, we’re all for shaking up the system, but not at the cost of integrity. The road to financial revolution is paved with accountability, and right now, BNC’s saga is a glaring detour. Let’s hope the players involved remember why they entered this space—to build a better future, not to tear it apart with ego and opacity.