YZi Labs Warns 10X Capital Over BNB Treasury Mismanagement

TLDR

• YZi Labs demands corrective action on BNB treasury management.
• Dispute involves $400-$480 million in BNB assets.
• BNC stock prices dropped by 0.7% amid the controversy.

YZi Labs has issued a formal warning to 10X Capital amid a dispute concerning BNB reserves. The move highlights concerns over the alleged mismanagement of CEA Industries, Inc.’s treasury previously focused on BNB assets. YZi Labs, linked to Binance founder Changpeng Zhao, has called for corrective action to ensure compliance with original strategic agreements.

On December 3, 2025, YZi Labs issued a “Notice and Demand for Corrective Action” to 10X Capital Asset Management. This notice requires the asset manager to verify that the treasury’s capital is primarily held in BNB, as initially intended. Further allegations point to strategic violations, such as attempts to shift investments to competing cryptocurrencies like Solana.

Concerns Over Treasury Management

The dispute involves YZi Labs, the family office linked to Changpeng Zhao, and 10X Capital, which manages the treasury for CEA Industries, Inc. YZi Labs claims that 10X Capital has failed to adhere to the initial BNB treasury strategy and neglected to disclose critical information such as BNB holdings and share counts.

The controversy involves approximately $400 to $480 million in BNB assets held in BNC’s treasury. YZi Labs emphasizes that a $500 million PIPE investment was secured in July 2025 to reinforce BNB treasury operations, which are reportedly being threatened by proposed shifts to Solana.

Call for Governance Reforms

YZi Labs is urging significant changes to CEA Industries, Inc.’s governance. They demand the addition of independent directors to protect shareholder interests and ensure adherence to established strategies. The asset manager and company executives, including 10X’s founder Hans Thomas and BNC CEO David Namdar, face accusations of conflicts of interest and governance lapses.

Existing tensions are impacting market performance, with on-chain data yet to reflect this dispute’s full ramifications. Disclosures submitted by YZi Labs to the SEC call for more board consent solicitations to address governance concerns at BNC, but no enforcement actions have been reported.

Market Reactions and Implications

The public dispute has already seen tangible market effects. Reports indicate approximately a 0.7% drop in BNC stock prices and a 1% decline in BNB token value since the matter surfaced. These developments underline the financial implications of strategic misalignments within crypto treasury management.

YZi Labs continues to engage stakeholders through official channels, aiming to halt 10X Capital’s alleged deviation from the BNB-focused strategy. The absence of on-chain specifics, such as staking flows and TVL shifts, underscores a need for greater transparency in cryptocurrency governance.

Future Proceedings and Perspectives

This governance conflict between YZi Labs and 10X Capital highlights a broader narrative in crypto asset management: the importance of aligning with strategic objectives and transparent reporting. As the situation evolves, stakeholders and industry watchers will observe how it may affect investor sentiment and BNC’s position in the market.

YZi Labs formally cautions 10X Capital about these management issues, emphasizing the significance of resolving disputes to maintain the integrity and value of crypto assets. As such, efforts to establish stronger governance frameworks and uphold fiduciary responsibilities remain central to ongoing discussions.