YZi Labs has accused 10X Capital Asset Management LLC of exceeding the five percent ownership threshold in CEA Industries Inc. without making the required public disclosures to the U.S. Securities and Exchange Commission (SEC). According to YZi Labs, 10X exercised nearly 213,000 warrants, significantly increasing its shareholding to approximately 5.39 percent, surpassing SEC reporting requirements. Despite this, neither 10X nor its board member Hans Thomas filed the mandatory Schedule 13D disclosure. YZi Labs confirmed it did not exercise any warrants, attributing the ownership increase solely to 10X. The company also raised concerns that multiple entities affiliated with 10X, along with insiders, may be collectively increasing ownership, potentially constituting an “insider group” under SEC rules, which requires transparent reporting. YZi Labs criticized 10X for failing to provide explanations, viewing this silence as a violation of transparency norms and possibly indicative of deliberate regulatory non-compliance. CEA Industries operates in the energy, chemical, and industrial products sectors. The SEC’s disclosure rules aim to ensure investor transparency and market integrity, and undisclosed large ownership stakes can undermine investor confidence and lead to legal complications. It remains to be seen how the SEC will respond to these allegations and whether 10X Capital will make full and transparent disclosures regarding its stake in CEA Industries.
Source: binance
