CZ-Backed YZi Labs Challenges CEA Industries Over Poison Pill and Board Moves
Changpeng “CZ” Zhao-backed YZi Labs is intensifying its challenge against CEA Industries over moves it says limit shareholder rights and protect the current board from being replaced.
YZi criticized CEA for adopting a “poison pill” shareholder rights plan and changing its bylaws, arguing these steps make it harder for shareholders to act and could block efforts to change the board. The firm says these measures go beyond Nevada law and warned the board could face legal risk if voting rights are further restricted.
As part of its campaign, YZi is pushing to expand CEA’s board and elect a new group of directors. It also criticized CEA for delaying its 2025 annual meeting, calling it a key opportunity for shareholders to vote on board composition and urging the company to avoid “manipulative behavior” around scheduling.
YZi Labs Challenges CEA Over Board Moves
YZi also disputes CEA’s claim that it has never considered other digital assets for its treasury strategy. While CEA said it remains committed to a BNB-focused digital asset treasury (DAT), YZi points to public comments by CEO David Namdar about exploring other assets, like Solana, as well as promotional and fundraising activities by Namdar and director Hans Thomas.
YZi says these raise questions about whether the board is fully aligned with CEA’s BNB strategy. CEA has defended the poison pill and bylaw changes, saying they are meant to protect all shareholders and preserve long-term value while still encouraging engagement. However, the company has not issued a new response to YZi’s latest claims.
The firm’s main priorities are to protect CEA shareholder rights and support the integrity and value of the BNB ecosystem in compliance with SEC rules. CEA had not responded to requests for comment by publication time.
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