YZi Labs Increases Dominance Battle Over Director Links To 10X Capital

The company cited an SEC filing showing the former director previously served as 10X’s Vice Chairman, challenging claims of the board’s independence.

YZi Labs has escalated its public dispute with the BNC 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 came amid allegations that the group is busy and trying to silence the voices of investors.

Former BNC Director Linked to 10X Capital

In its latest statement shared with X, YZi Labs emphasized that transparency is “non-negotiable,” as it highlighted what it described as an undisclosed relationship 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., an entity associated with BNC.

In a Dec. 30 8-K filing, the company described the group from which Read resigned as independent, and said his departure followed his acceptance of a new role that required him to step down from outside boards. The document includes a statement from him, in which he praised the company for its “active and independent oversight.”

However, YZi Labs pointed to that same SEC disclosure to show that the former executive once served as Vice Chairman of 10X Capital. According to the trading company, these relationships challenge claims of independence and raise concerns about board oversight.

Additionally, YZi Labs alleges that the asset manager entered into a 20-year agreement that allows it to continue collecting payments even after termination, saying such terms exacerbate potential conflicts of interest and deserve closer scrutiny from shareholders.

YZi Labs Pushes Board Expansion

Administrative conflict is fueled by disagreements over the BNC’s approach. As CryptoPotato previously reported, YZi Labs and other investors are backing BNC specifically in its focus on treasury BNB Chain-related strategies.

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Recent internal discussions, however, have hinted at a possible pivot to other digital assets, causing unease. YZi Labs pointed to public comments from BNC’s CEO in November 2025 about considering assets like Solana as evidence of this strategic decline.

“We are committed to protecting the rights of BNC shareholders and supporting the integrity of the BNB ecosystem,” he wrote Company.

Recently raised questions about board independence add another layer to YZi Labs’ drive for change. The company has filed a statement of official consent to expand BNC’s board and include its nominees, a list that includes former US Senator Max Baucus and blockchain figure Matthew Roszak. YZi Labs maintains its mission to protect shareholder rights and uphold the integrity of the BNB ecosystem that it believes BNC is built upon.

The outcome of this battle will be a test of shareholder activism in the crypto-corporate sphere and may decide whether BNC remains tied to the BNB ecosystem or charts a new course. In the meantime, YZi Labs is betting that allegations of conflicted governance will persuade some shareholders to support its call for a boardroom overhaul.

As of January 12th, the venture capital firm reported direct ownership of 2,150,481 shares of common stock and additional shares subject to prior funding guarantees, established, and advisory strategies.