YZi Labs Challenges CEA’s Takeover Shield & Board Control

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YZi Labs Challenges CEA’s Takeover Shield and Board Control

Written by Aaron S.,

Editor-In-Chief

Last Updated: January 08, 2026

Key Takeaways

YZi Labs, backed by Binance’s CZ, criticized CEA’s new rules that make takeovers harder and reduce shareholder power;
YZi plans to expand CEA’s board and replace directors, as the current measures exceed Nevada law and harm investors;
The firm also disputes CEA’s claim that it never considered other tokens, citing remarks about Solana as proof that alternatives were discussed.

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YZi Labs Challenges CEA’s Takeover Shield and Board Control

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YZi Labs, supported by Binance $6.74B founder Changpeng Zhao, has stepped up its disagreement with CEA Industries after the company introduced new rules that make takeovers harder and changed parts of its bylaws.

YZi said these actions protect the current board instead of shareholders and limit investor rights.

In a report filed with the US Securities and Exchange Commission (SEC) on January 5, and in a post on X two days later, YZi explained its concerns about CEA’s recent decisions.

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The firm said it is looking at CEA’s new shareholder rights plan, often called a “poison pill", a defense meant to block unwanted buyouts, and new bylaw changes that affect how investors can take action in writing.

According to YZi, these steps create additional barriers beyond what Nevada law requires. The firm warned that such limits on voting power could expose CEA’s directors to legal risks if they fail to meet their duties to shareholders.

To address these issues, YZi is working on a plan to ask shareholders to approve expanding the board and choosing a new set of directors.

The disagreement also touches on CEA’s approach to its digital asset treasury (DAT). YZi disputed CEA’s December 4 statement by claiming it has never considered tokens other than BNB BNB $891.33 for this strategy.

YZi pointed to public comments that CEA’s CEO, David Namdar, made at a November 2025 conference, in which he discussed other crypto options, such as Solana SOL $138.60 . The firm said this shows that the company had at least considered alternatives to BNB.

Meanwhile, Binance recently reconsidered its operations in the United States. How? Read the full story.