From Binance Labs to Power Struggles: The Ecosystem Battle Between YZi Labs and BNC

Power struggles within the crypto ecosystem add new chapters. On January 5th, YZi Labs Management Ltd. issued a statement accusing the BNC board of directors of obstructing shareholder rights through “poison pill” plans and amendments to the bylaws, essentially to consolidate their own position. This dispute not only involves corporate governance but also reflects deeper disagreements over the direction of crypto investments.

The Core of the Dispute: Strategic Shift or Power Preservation

YZi Labs’s allegations focus on several key points. First, at the procedural level, the BNC board has implemented restrictions beyond what Nevada law requires, including the “poison pill” plan and bylaw amendments, aimed at hindering and delaying shareholders’ exercise of rights through written consent. Second, at the strategic level, YZi believes BNC is abandoning the BNB ecosystem while considering a shift to other cryptocurrencies like Solana — contradicting previous commitments made by the company.

Most notably, YZi refutes BNC’s claim that they have “never considered adopting alternative tokens.” According to YZi, BNC CEO David Namdar explicitly stated at an industry conference in November 2025 that BNC had considered shifting to Solana. Coupled with Namdar and board member Hans Thomas promoting other digital asset reserve projects during their tenure, YZi has reason to believe this constitutes a betrayal of shareholder interests.

Breakdown of Power and Trust

Legal Risks of Fiduciary Duty

YZi has warned the board that failure to properly fulfill fiduciary duties could entail potential legal risks. However, the board’s response has been to restrict shareholder rights rather than admit fault — a choice that itself raises questions. If a board, when accused of mismanagement, responds primarily by strengthening defenses instead of explaining or correcting, it usually indicates a lack of support from shareholders.

Formation of Shareholder Alliances

YZi is not an isolated voice. According to the announcement, many other shareholders have expressed similar concerns about BNC’s strategic shift and abandonment of the BNB ecosystem. This suggests that the dispute has evolved from internal disagreements into a potential alliance of shareholders opposing the current direction.

YZi Labs’s Ecosystem Position

To understand the background of this dispute, it’s important to consider YZi Labs’s role within the crypto ecosystem. According to relevant information, YZi Labs (formerly Binance Labs) is not only a major investor but also has investments across multiple hot sectors:

• Oracle sector: Lead investor in APRO (raised $3 million, with participation from Polychain Capital, Franklin D. etc.), invested in BREV (which has generated 285 million proofs supporting over 40 protocols)
• AI Oracle: invested in AT (an AI-driven oracle system)
• Other ecosystem projects: involved in MYX Finance and others

This investment portfolio reflects YZi Labs’s deep involvement in crypto infrastructure. If BNC truly shifts from the BNB ecosystem to Solana, it’s not just a strategic adjustment for a single company but could impact the entire ecosystem’s investment logic and resource allocation.

The Logic Behind the Strategic Shift

Why might BNC consider moving to Solana? Several reasons could be behind this:

• Recent strong performance of the Solana ecosystem, with market cap remaining in the top ten
• Diversification considerations for digital asset reserves
• Reassessment of the future prospects of the BNB ecosystem

But the key question is whether such a shift should be conducted secretly at the board level rather than through full communication with shareholders. YZi’s allegations point to this governance loophole.

Focus for Future Attention

This dispute could develop in several directions. First, the outcome of the shareholder meeting — YZi has initiated a proxy solicitation, which is often the ultimate expression of shareholder power. Second, legal action — if fiduciary duty violations are involved, legal risks may arise. Third, strategic clarity — whether BNC will ultimately stick to the BNB ecosystem or genuinely shift toward diversification.

Summary

The essence of this dispute is not merely a power struggle but a contest over investment direction and governance transparency within the crypto ecosystem. As a former Binance Labs, YZi Labs’s broad investment footprint gives it a voice and genuine concern over BNC’s strategic shift. The BNC board’s response — restricting shareholder rights instead of explaining the strategy — further deepens the crisis of trust.

For the entire crypto ecosystem, this dispute highlights an important issue: when power and interests conflict, how crucial are governance transparency and shareholder rights protection? Regardless of the final outcome, this will serve as a case study in governance for crypto companies.