CZ-Backed YZi Labs Escalates Dispute with CEA Industries Over Governance Measures

YZi Labs, backed by former Binance CEO Changpeng Zhao, has escalated its corporate governance battle against CEA Industries, targeting defensive measures the firm claims undermine shareholder control ^[1].

The dispute centers on CEA's recent adoption of a shareholder rights plan—commonly known as a poison pill—and amendments to company bylaws. YZi contends these actions exceed Nevada state legal requirements and make it substantially more difficult for shareholders to exercise their rights or pursue board changes ^[1].

As part of its activist campaign, YZi is advocating for CEA board expansion and the election of new directors. The firm has also criticized CEA's postponement of its 2025 annual meeting, characterizing the delay as potentially "manipulative" and noting that such meetings provide crucial opportunities for shareholders to influence board composition ^[1].

Additionally, YZi has questioned CEA's commitment to its stated BNB-focused digital asset treasury strategy, citing public statements by CEO David Namdar regarding potential exploration of alternative cryptocurrencies including Solana ^[1].

CEA has defended its governance changes as protective measures designed to safeguard shareholder interests and preserve long-term company value. However, the company had not issued further responses to YZi's latest allegations at press time ^[1].