Cz-backed Yzi Labs Escalates Fight Over Cea’s ‘poison Pill’ And Bnb... (2026)

YZi Labs is challenging CEA Industries’ newly adopted poison pill and bylaw changes, accusing the board of entrenchment and misrepresenting its commitment to a BNB treasury.

Changpeng “CZ” Zhao-backed YZi Labs has escalated its campaign against CEA Industries over a newly adopted poison pill (a defensive tactic a company’s board uses to make a hostile takeover extremely difficult or expensive), and bylaw amendments that it claims are “stockholder-unfriendly” and intended to entrench the current board.

The investment firm, backed by Binance founder CZ, outlined its objections in a Monday filing with the United States Securities and Exchange Commission (SEC) and in a parallel public X statement on Wednesday.

​YZi said it is reviewing CEA’s adoption of a stockholder rights plan and bylaw changes that affect shareholders’ ability to act by written consent.

YZi argued that the measures impose “unnecessary constraints and procedural burdens” beyond Nevada law and warned that further “degradation of voting rights” could expose the board to potential liability for failing to meet its fiduciary duties.

The company is pursuing a consent solicitation to expand the size of CEA’s board and elect a new slate of directors.

​YZi also rejected CEA’s Dec. 4 statement that it “has never considered an alternative token” for its digital asset treasury (DAT) strategy or launched competitive DAT ventures.

Related: CZ’s YZi Labs moves to take over board of flatlining BNB treasury

It pointed to public comments CEA CEO David Namdar allegedly made at a November 2025 industry conference about contemplating other crypto assets, such as Solana (SOL), as evidence that alternatives to BNB (BNB) had been discussed.

YZi said this, combined with promotion and capital-raising activities for other DAT projects by Namdar and director Hans Thomas, raised concerns among shareholders about alignment with CEA’s BNB-focused strategy.

Source: CoinTelegraph