CZ Denies Financial Times Report on YZi Labs Funding: “Completely False”

Changpeng "CZ" Zhao, the founder of Binance, has dismissed recent claims made by the Financial Times suggesting that his family office, YZi Labs, is preparing to seek external funding. In a post on X, he labeled the report as "completely false" and criticized it for containing "made-up information and negative narratives."

Key Takeaways

CZ Zhao refuted a Financial Times article alleging that YZi Labs would seek outside investment.
He stressed that YZi Labs has never engaged in discussions or preparations for fundraising.
YZi Labs manages Zhao's investments, focusing primarily on cryptocurrency startups and sectors like AI and biotechnology.
Despite past investments from external sources, YZi Labs does not currently have plans to accept outside capital.

CZ Denies Financial Times Report on YZi Labs Funding: “Completely False”

CZ Disputes FT Claims about YZi Labs

Changpeng Zhao, founder of the cryptocurrency exchange Binance, has rejected the rumors circulated by the Financial Times regarding his family office, YZi Labs, potentially seeking external funding. In a post on X this Monday, Zhao labeled the article “completely false,” asserting that it was filled with “made-up information and negative narratives.”

The Financial Times had indicated that YZi Labs, founded in January to manage Zhao's personal wealth, might consider allowing outside investors into its significant $10 billion investment vehicle.

One of the insights shared by the FT was from YZi Labs' CEO Ella Zhang, who noted that there is interest from external investors. She indicated that if YZi Labs were to seek outside investment in the future, it would represent a "huge responsibility."

YZi Labs Functions Independently

Zhao responded firmly, stating that YZi Labs has not prepared any presentation materials, held any demos, or participated in fundraising talks since its rebranding. He reaffirmed that YZi Labs functions independently and is not engaging in any capital-raising efforts. "As far as I know, YZi Labs is not raising external funds... There have been no demos, no requests, no discussions," Zhao stated.

Additionally, Zhao addressed the FT's portrayal of his U.S. legal settlement. He clarified that while he did plead guilty to a violation related to the Bank Secrecy Act, this should not be interpreted as involvement in money laundering.

Currently, YZi Labs oversees Zhao's investments as well as those from a select group of early Binance executives, including Yi He. The firm primarily invests in cryptocurrency startups but has also put money into projects involving artificial intelligence and biotechnology. After briefly accepting around $300 million from outside investors in 2022, it later returned part of that amount.

The FT article mentioned that if YZi Labs were to eventually welcome U.S. investors, it would encounter increased regulatory scrutiny, particularly as U.S. policymakers adopt a more favorable stance towards digital currency.

Yet, Zhao stressed that no plans for such an endeavor are in motion. He also criticized the Financial Times for what he described as misleading reporting, noting he declined a lunch interview invitation that Zhang later accepted, which he termed a "trap."

YZi Labs currently employs a 12-person team focusing on long-term investments rather than short-term gains.

YZi Labs Expands Its Investment Focus

In January, Binance Labs, the venture arm of Binance, underwent rebranding to YZi Labs, reflecting an expansion of its investment strategies. Co-led by Zhao and Zhang, the firm now aims at blockchain, artificial intelligence, and biotechnology investments while maintaining links to the Binance ecosystem.

"I’m a long-term investor who cares about impact, not returns," Zhao shared, emphasizing his vision for supporting technology that benefits society and the environment. YZi Labs will continue to nurture Web3 projects while branching out into various sectors.

The firm has already made notable investments, including a May deal with Avalon Labs, a Bitcoin DeFi platform focused on BTC-backed lending and introducing a new stablecoin named USDa. This project manages over 20,000 BTC, with a total value locked exceeding $500 million.

In August, YZi Labs announced a strategic investment in USD.AI, enhancing on-chain infrastructure finance by providing hardware-backed credit targeted at AI operators. Additionally, YZi Labs has increased its stake in Ethena Labs, the developers behind USDe, now recognized as the third-largest U.S. dollar-pegged crypto asset, with $13 billion locked.

This renewed funding is intended to enhance integration across exchanges and DeFi platforms while rolling out new products, including a compliant stablecoin and an institutional settlement layer.