Public company governance war escalates: YZi Labs challenges the SEC, the power struggle in the crypto industry has taken a new turn

Shareholder and boardroom confrontations are intensifying among publicly listed companies in the crypto industry. According to the latest news, governance conflicts between YZi Labs and CEA Industries have escalated to the stage of submitting an agreement challenge to the U.S. Securities and Exchange Commission (SEC). This dispute involves multiple aspects such as corporate governance, token strategy, and information disclosure, reflecting deep-seated issues faced by crypto-related listed companies.

The Core of the Conflict: Power Struggle and Transparency

Board of Directors’ Defensive Posture

Following a written shareholder consent solicitation initiated by YZi Labs, the CEA Industries board of directors has taken a series of defensive measures. According to relevant reports, these measures include implementing a “Poison Pill” plan and amending the company’s bylaws to increase procedural barriers for shareholders to exercise their rights. Additionally, the company has postponed its 2025 annual general meeting to after December 17.

YZi Labs believes that these actions fundamentally serve to systematically weaken shareholder rights and consolidate the control of the board itself. The organization points out that these measures go beyond the necessary requirements under Nevada law and are essentially aimed at avoiding shareholder oversight.

YZi Labs’ Offensive Strategy

YZi Labs has formally submitted a preliminary consent statement to the SEC, attempting to push for board structure adjustments through compliance procedures. The organization proposes expanding the board size and electing new directors nominated by itself to restore governance checks and balances and strengthen shareholder representation.

Token Strategy Dispute: Disconnection Between Signal and Reality

Another focal point of this conflict is CEA Industries’ digital asset strategy, which most vividly reflects market confidence issues.

Contradictions in Strategic Statements

The CEA Industries board claims that the company has “never considered alternative tokens” and has consistently adhered to a digital asset treasury strategy centered on BNB. The company currently holds approximately 516,000 BNB.

However, YZi Labs denies this statement and cites CEO David Namdar’s public remarks at the industry conference in November 2025 as evidence. It is reported that Namdar mentioned the company had evaluated other crypto assets, including Solana. This inconsistency in statements makes it difficult for investors to accurately assess the company’s long-term direction.

Why This Matters

Token strategy is not only a technical issue but also a trust issue. Investors’ initial investment decisions are based on their understanding of the company’s strategy, and the current confusion in information directly erodes market confidence. If management’s statements about strategy are inconsistent, how can investors make judgments about the company’s future?

Market Impact and Industry Insights

Impact on CEA Industries Itself

This governance conflict has already had tangible effects on the company:

• Postponement of the annual shareholder meeting, extending uncertainty
• Potential impact on decision-making efficiency due to opposition between the board and major shareholders
• Strategic information chaos may lead to declining investor confidence

Industry-Level Significance

As an investment organization closely related to the crypto industry (public information suggests ties to CZ), YZi Labs frequently participates in governance issues of listed companies. This reflects a new trend: crypto-related listed companies are becoming new battlegrounds for power struggles.

The increasing frequency of such conflicts indicates that as digital asset strategies gradually become central to corporate decision-making, battles over control, transparency, and shareholder rights are intensifying. Similar governance conflicts and proxy fights may become the new norm in the industry.

Follow-Up Focus

Based on the latest information, the following areas warrant ongoing attention:

• The SEC’s response to YZi Labs’ challenge to the consent process
• The final timing and voting results of the 2025 annual shareholder meeting
• Whether the board will adjust its defensive measures
• Final clarification and implementation plan for the token strategy

Summary

This conflict between YZi Labs and CEA Industries essentially exemplifies the maturation process of governance in crypto industry listed companies. It not only reflects the awakening of shareholder rights but also exposes deficiencies in governance transparency and strategic clarity within some companies.

For investors, this signals an important indicator: in investments related to crypto-listed companies, the quality of corporate governance and the consistency of information disclosure have become key risk assessment factors. For the industry, the increasing number of such conflicts also suggests that establishing more mature corporate governance frameworks is an essential step toward industry standardization. The subsequent developments are worth watching.