YZi Labs Moves to Seize Control After CEA’s Crypto Pivot Crumbles

YZi Labs, backed by Binance founder Changpeng Zhao, now wants to seize control of the company by overturning recent bylaw changes, expanding the board, and installing its own nominees. Other crypto treasury firms are also undergoing leadership shake-ups, including Yorkville Acquisition Corp.’s move to merge with Trump Media and Crypto.com to build a new CRO-focused treasury. Despite the sector’s early momentum, crypto treasury companies across the board are struggling.

CEA Implodes After BNB Bet

Binance founder Changpeng Zhao’s YZi Labs moved to seize control of CEA Industries, the publicly traded firm that made headlines earlier this year for its bold plan to become the world’s largest BNB treasury company. In a regulatory filing on Monday, YZi said it is seeking to overturn all bylaw amendments made since July, expand the company’s board, and install its own slate of director nominees. The firm argued that the shake-up is necessary to stop what it calls the “continued destruction of stockholder value” and to ensure the business is aligned with shareholders’ interests.

SEC filing

The investor rebellion happened after a dramatic collapse in CEA’s share price, which sunk roughly 89% from its July 28 peak of $57.59. That surge followed the company’s announcement—on the same day—that it would pivot from a Canadian vape manufacturer to a BNB-focused digital asset treasury firm.

YZi helped bankroll CEA’s ambitions through a $500 million PIPE deal that closed in August, and was billed as an effort to build the largest publicly listed BNB Chain treasury strategy. But instead of benefiting from the crypto-centric pivot, shareholders watched the stock plunge to $6.47 on Monday, now trading below its pre-pivot valuation.

CEA Industries share price (Source: Google Finance)

YZi’s filing accuses CEA management of failing to provide timely investor updates and making “little to no” marketing effort to promote the company’s new identity. It also takes aim at CEO David Namdar, who was brought in through the firm’s association with investment firm 10X Capital. YZi claims he has shown a “lack of devotion and loyalty” by promoting rival crypto treasury companies, and suggested that the reconstituted board should consider appointing a new chief executive.

If YZi succeeds in winning support from the majority of outstanding shareholders, it will effectively gain control of the world’s largest public BNB treasury company. This will be a huge development given BNB’s strong ties to Zhao and Binance, which reportedly controls most of the token’s supply. 

CEA currently holds 515,054 BNB at an average cost of $851.29, putting its mNAV at 0.79x. While BNB itself fell almost 40% from its record high, the token is still up 24+% on the year. This also means that CEA’s performance lagged quite a bit behind the asset it is built around.

BNB’s price action over the past year (Source: CoinMarketCap)

New CRO Treasury Takes Shape

Other crypto treasuries are also experiencing shake-ups. Yorkville Acquisition Corp. is bringing in two former Gryphon Digital Mining executives to lead its upcoming merger that will create a publicly traded digital asset treasury centered on accumulating Cronos’ native token, CRO. 

The company announced that Steve Gutterman will take over as CEO and Sim Salzman will serve as chief financial officer once the merger closes, which is expected in the first quarter of 2026. Both executives bring restructuring, regulatory, and capital-markets experience, having previously helped steer Gryphon Digital Mining through turbulent times and holding senior posts at firms including E*TRADE, American Bitcoin, and Marathon Digital.

Announcement from Trump Media Group

The appointments came as Yorkville gets ready to merge with Trump Media & Technology Group and Crypto.com to form a new entity dedicated to accumulating and managing CRO as its primary reserve asset. The companies revealed the initiative in September, as well as an initial purchase of 684.4 million CRO at around $0.153 per token. After the merger, the new firm plans to operate a validator node on the Cronos blockchain, giving it the ability to stake CRO, participate in network governance, and earn rewards that could expand its long-term token holdings.

Crypto.com became a key crypto partner for the Trump administration over the past few months. It was one of a select few firms invited to the White House Crypto Summit in March, and soon after, Trump Media signed a non-binding agreement with the exchange to explore launching US-based digital asset ETFs. 

CRO price action over the past month (Source: CoinMarketCap)

The industry, however, is facing more challenges. After a strong start to the year, digital asset treasuries have come under pressure after Bitcoin, Ethereum, and the broader crypto market slumped. Strategy Inc., the flagship corporate Bitcoin holder, fell about 36% over the past month. Mara Holdings, a major miner and the second-largest BTC corporate holder, is down more than 35%. Although no publicly traded CRO-focused treasury exists yet, the token itself  shed close to 30% over the past month.