Key Development in BNB Management
An important move regarding BNB has been initiated by YZi Labs, the investment arm of Binance, the world's largest cryptocurrency exchange.
Accordingly, YZi Labs filed a consent decree with the SEC requesting significant changes to the management and board of CEA Industries (BNC), a BNB acquisition company it finances.
YZi Labs argued that CEA Industries Inc., known for its attempt to create a BNB treasury, was destroying shareholder value in its current state.
YZi Labs' Proposals for CEA Industries
At this point, YZi Labs stated in its SEC filing that CEA is looking to expand the size of its board and select highly qualified candidates as directors.
YZi Labs called on BNC shareholders to support proposals to expand the board, elect YZi Labs' nominees, and rescind all changes to the company's bylaws made since July.
If the majority of the company's shareholders agree, YZi Labs will take control and management of what it describes as the world's largest publicly traded BNB treasury company.
Allegations Against Current Management
YZi Labs alleged in an SEC filing that CEA Industries CEO David Namdar and others actively participated in fundraising calls to promote another digital asset treasury, despite their positions at BNC. YZi Labs reportedly learned in November that Namdar and Thomas were “promoting and seeking funding for other DATs.”
Market Reaction and Share Performance
BNC shares, previously traded under the ticker symbol VAPE, reached a peak of $57.59 in July following the Treasury announcement but have since fallen nearly 89%. BNC, which fell 10% on Monday, closed at $6.47.