CEA Industries, the company that rebranded itself as the world's largest BNB treasury, has seen its stock value plummet by 95% from its 52-week high and is now publicly blaming the family office of Binance founder Changpeng 'CZ' Zhao. The company, trading on Nasdaq under the ticker BNC, issued a press release demanding that YZi Labs, CZ's family office, disclose the full terms of an alleged "secret side agreement" it signed with 10X Capital Asset Management LLC.
This agreement is said to be connected to a $500 million Private Investment in Public Equity (PIPE) transaction in July 2025, which propelled CEA's shares to a multi-year high of $82.88. 10X Capital, the lead party in the PIPE deal, also served as CEA's BNB asset manager, reportedly "with the support of YZi Labs." The company is now demanding clarity on the nature and extent of this support.
CEA Industries has a history of pivots and declines. Formerly a Canadian electronic goods and vape retailer trading under tickers VAPE and CEAD, the company's stock had already fallen from a peak of $873 in 2018 to below $8 before it embraced the "digital asset treasury" trend in summer 2025. The rebrand to BNC and shift to a BNB-holding model was intended to reverse its fortunes but instead accelerated its collapse. The stock is currently trading at $3.88.
The PIPE transaction was managed by financial giant Cantor Fitzgerald, founded by U.S. Secretary of Commerce Howard Lutnick, which acted as lead financial advisor for 10X Capital and sole placement agent for CEA. The deal attracted major cryptocurrency funds as investors, including Pantera Capital, GSR, Arrington Capital, Borderless, Blockchain.com, Arche Capital, Hypersphere Capital, Kenetic, and the founders of BitFury. These investors are now facing near-total losses.
YZi Labs has forcefully denied the allegations. The family office contested CEA's characterization, calling the claims of a "secret collusion" false. It has requested that CEA board members Hans Thomas and David Namdar recuse themselves from asset management discussions and announced plans to seek written shareholder approval for board changes.
The turmoil extends to leadership. Russell Read, Chief Investment Officer of 10X Capital, was appointed CIO of CEA after the PIPE closed but was moved to a non-executive role by September 2025 and resigned completely by year's end.
CEA's crash is part of a broader collapse in the digital asset treasury (DAT) segment. Other Cantor Fitzgerald-linked vehicles have suffered similarly: Nakamoto has lost 99% of its value since May 2025, Twenty One is down 89% since May, and Bitcoin Standard Treasury Company has fallen 37% since July. CEA's stock has dropped 41% year-to-date, 67% over the past 12 months, and 98% over the last five years.
