The firm cited SEC filings showing the ex-director previously served as Vice Chairman of 10X, challenging claims of board independence.
YZi Labs has escalated its public dispute with BNC’s board by questioning the independence of a former director, who is accused of being linked to the company’s asset manager, 10X Capital.
This disclosure comes amid allegations that the group is engaging in entrenchment and attempting to silence investor voices.
Former BNC Director Linked to 10X Capital
In its latest statement shared on X, YZi Labs emphasized that transparency is “non-negotiable,” as it highlighted what it described as undisclosed ties between an “independent” director at BNC and 10X Capital. At the center of the claims is Russell Read, who recently stepped down from the board of CEA Industries Inc., the corporate entity associated with BNC.
In a December 30 8-K filing, the company described the group from which Read resigned as independent, stating that his departure followed his acceptance of a new role requiring him to step down from external boards. The document also includes a statement from him, in which he praised the entity for its “diligent and independent oversight.”
However, YZi Labs pointed to those same SEC disclosures to show that the former executive previously served as Vice Chairman of 10X Capital. According to the venture capital firm, this relationship directly challenges claims of independence and raises concerns about the board’s oversight.
Additionally, YZi Labs alleged that the asset manager structured a 20-year agreement that allows it to continue collecting fees even after termination, arguing that such terms deepen potential conflicts of interest and merit closer scrutiny from shareholders.
YZi Labs Pushes for Board Expansion
The governance clash is fueled by a fundamental disagreement over BNC’s direction. As CryptoPotato reported previously, YZi Labs and other investors backed BNC specifically for its focus on BNB Chain-related treasury strategies.
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Recent internal discussions, however, have hinted at a potential pivot to other digital assets, causing unease. YZi Labs has pointed to public comments from BNC’s CEO in November 2025 about contemplating assets like Solana as evidence of this strategic drift.
“We remain committed to protecting BNC shareholder rights and upholding the integrity of the BNB ecosystem,” wrote the company.
The newly raised questions about board independence add another layer to YZi Labs’ campaign for change. The firm has filed a formal consent statement to expand BNC’s board and install its own nominees, a list that includes former U.S. Senator Max Baucus and blockchain figure Matthew Roszak. YZi Labs maintains its goal is to protect shareholder rights and uphold the integrity of the BNB ecosystem it believes BNC was built upon.
The outcome of this fight will be a test of shareholder activism in the crypto-corporate sphere and could determine whether BNC remains tethered to the BNB ecosystem or charts a new course. For now, YZi Labs is betting that allegations of conflicted governance will persuade other shareholders to support its call for a boardroom overhaul.
As of January 12, the venture capital firm has reported direct ownership of 2,150,481 shares of common stock and additional shares underlying pre-funded, stapled, and strategic advisor warrants.
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