It's a BNB reserve company... YZi Labs 'directly criticizes' U.S. CEA

Conflict between YZi Labs, founded by Changpeng Zhao (CZ), and CEA Industry, a BNB reserve company, is escalating.

YZi Labs said on the 7th (local time) via its official X account, "As a major shareholder of CEA Industry, it is reviewing CEA Industry's recent actions to initiate the process of convening a shareholders' meeting and requesting shareholder consent." YZi Labs said, "(The measures under review) include poison clauses designed to impede and delay shareholders' freedom of expression through written shareholder consents," and "despite YZi Labs' warnings, the (CEA Industry) board took such measures to strengthen their position."

CEA Industry is a U.S. Nasdaq-listed company that declared BNB reserves in July last year. Earlier, YZi Labs announced last month plans to form a shareholder coalition to increase its stake in CEA Industry. In response, CEA Industry adopted a shareholder rights protection plan to prevent hostile takeover attempts.

YZi Labs expressed that it was "disappointed" with CEA Industry's actions. YZi Labs said, "We are disappointed that the board appears to have focused on defensive measures to strengthen their position rather than engaging in good-faith communication with the largest shareholder," and "we are closely monitoring all activities and disclosures of CEA Industry."

YZi Labs also believes CEA Industry has considered reserving cryptocurrencies other than BNB. YZi Labs said, "CEA Industry's position that it has never reviewed other tokens in relation to the Digital Asset Treasury (DAT) strategy is clearly false," and "considering, among other things, the CEA Industry CEO's active promotion and fundraising for other DAT firms, shareholders' concerns are justified."

They also mentioned the possibility of board reconstitution. YZi Labs said, "Shareholders have the right to be represented by a board committed to the token strategy in which they invested," and "we hope to provide shareholders with the opportunity at the upcoming regular shareholders' meeting to decide whether to appoint new directors."