CZ's Family Office Accuses 10X Capital of Abandoning BNB Treasury Strategy for Solana, Triggering Governance Battle

A major governance conflict has erupted at BNB Network Company (BNC), the largest publicly traded BNB treasury company in the U.S., after YZi Labs—the family office of Binance founder Changpeng "CZ" Zhao—issued a formal notice to asset manager 10X Capital. YZi Labs accuses 10X Capital of mismanagement, value-destructive actions, and threatening to violate contractual agreements by planning to pivot away from accumulating BNB tokens in favor of alternative cryptocurrencies like Solana.

The dispute stems from a $500 million private investment partnership formed just a few months ago. YZi Labs claims that 10X Capital, which manages BNC's digital asset treasury, has informed market participants of plans to abandon the BNB ecosystem, contradicting the investment thesis presented to investors during the summer financing round. The family office alleges that 10X Capital, in collaboration with BNC's current CEO, has misled shareholders and significantly damaged shareholder value.

Specific grievances include delayed disclosure of basic information about BNC's assets—such as BNB holdings, share counts, and mNAV—and the lack of a public dashboard providing market-standard treasury transparency. YZi Labs also cites a breach of fiduciary duty by directors David Namdar and Hans Thomas due to conflicts of interest and their promotion of competing Digital Asset Treasury ventures.

The financial impact has been severe. YZi Labs states that the actions have led to BNC's stock underperforming relative to peers, trading approximately 19% below the pre-PIPE announcement level and 87% below the post-announcement level. In contrast, it points out that competitor BitMine Immersion Technologies Inc. has risen 667% from its pre-announcement close.

The conflict has escalated into a proxy fight. YZi Labs has filed a preliminary consent statement with the SEC, seeking stockholder support to expand BNC's board and elect additional directors. The firm, which directly owns roughly 2.15 million shares and holds warrants, demands that 10X Capital and its appointed directors amend the asset management agreement and release fundamental information expected of a publicly traded DAT.

Market reaction was immediate. Following the announcement, BNC stock fell 0.7% in pre-market trading, while the price of BNB pulled back nearly 1%. CEA Industries (BNC) currently holds 515,054 BNB tokens valued at approximately $462 million. YZi Labs has demanded written confirmation by December 5 that 10X Capital will comply with the original BNB treasury strategy and has not improperly disposed of BNB assets.