YZi Labs Warns BNC Shareholders of 10X Capital's Alleged Violations

As reported by HashNews, YZi Labs, a major shareholder of CEA Industries, Inc., has issued a notice to BNC asset manager 10X Capital, accusing it of lacking transparency and good governance. YZi Labs claims 10X Capital may be violating the strategic service agreement between the two parties and plans to shift BNC away from its BNB asset management strategy, despite a prior announcement to use a $500 million PIPE investment to build the BNB asset management business. According to the agreement, most of BNC's capital should be allocated to the BNB strategy when market conditions allow. However, the company's management has informed market participants of plans to abandon the BNB ecosystem in favor of other cryptocurrencies like Solana, breaching commitments to investors. Additionally, the CEO and board members are accused of conflicts of interest, including failure to disclose BNB positions and shareholdings, and refusing to amend allegedly unreasonable asset management agreement terms.