YZi Labs Challenges CEA Industries Board, Files SEC Consent Statement

YZi Labs has rebuked its dispute with CEA Industries. They are accusing the company’s board of limiting shareholder rights. In a public statement shared on X, YZi Labs criticized CEA Industries for adopting a poison pill plan and changing its charter. According to the company, these steps make it harder for shareholders to act through written consent.

YZi Labs argues that the measures protect the board rather than investors. The firm said such actions weaken transparency and reduce accountability. As a result, YZi Labs has filed a preliminary consent statement with the U.S. Securities and Exchange Commission. Seeking changes to the board structure.

Dispute Tied to Token Strategy and Board Control

The argument also revolves around CEA Industries’ digital asset strategy. YZi Labs denied allegations that the company never considered alternatives to its present token focus. It cited comments made by CEA Industries CEO David Namdar at a November 2025 industry event. At that conference, Namdar reportedly said the company had considered other crypto assets, including Solana.

YZi Labs said that this contradicts recent statements from the board. It also stated that investors deserve information on long term plans. Especially following major strategic shifts. The firm says stockholders supported the company based on a clear token strategy. Additionally, they are now receiving mixed signals. At the same time, YZi warned the board against delaying the 2025 annual shareholder meeting. The meeting has already past its expected date. YZi said that any further delays would raise concerns about fair elections and credible oversight.

SEC Filing Seeks Board Expansion and New Directors

In its SEC filing, YZi Labs asked to expand the size of the board and elect its nominated directors. The firm said this move would help restore balance and protect shareholder interests. It also urged investors to review all consent materials. Once they become available through the SEC.

YZi Labs is known as the family office linked to Changpeng Zhao. It has taken active roles in several governance debates. In this case, it said that it prefers engagement. But will step in if the boards fail to listen. CEA Industries has not fully responded to the recent filing. However, the company has previously stated that its governance practices follow legal standards. It aims to protect long term value.

What This Means for Investors

This dispute highlights growing governance tensions in crypto-linked public companies. As more firms adopt digital asset treasury models. Investor oversight is becoming more important. Proxy fights and consent actions may become more common. Currently, YZi Labs says it will continue pushing for open voting and fair board elections. The outcome could have an impact on how crypto focused companies balance control. Including transparency and shareholder rights moving ahead.