CZ Denies FT Report on YZi Labs Fundraising Plans

Changpeng Zhao, the founder of cryptocurrency exchange Binance, has forcefully dismissed a Financial Times report suggesting that his family office, YZi Labs, was exploring the possibility of raising capital from external investors. In a social media post, Zhao categorically denied the claims, stating that the firm, valued at approximately $10 billion, is and will remain a private vehicle for managing his personal wealth. He emphasized that YZi Labs has no plans to open its doors to outside backers, countering the FT’s narrative that the firm could evolve into a fund for third-party investors as its operations mature.

Zhao’s rebuttal was specific and detailed. He asserted that no demonstration, pitch deck, or fundraising roadmap exists for YZi Labs, directly contradicting the report’s implications. He further clarified that since the firm’s rebranding earlier this year, it has not sought a single outside investor. Zhao also addressed a specific claim within the FT article, denying that YZi Labs had held any discussions with former SEC Commissioner Paul Atkins or other financial figures. He characterized the entire article as being filled with ‘made-up info and negative narratives,’ noting that he had not read the piece himself due to its subscription paywall but was alerted to its content by social media commentary.

The establishment of YZi Labs marks a significant new chapter for Changpeng Zhao. The family office was founded in January 2024 to manage Zhao’s personal fortune after he stepped down as CEO of Binance in November 2023. His departure was part of a monumental $4.3 billion settlement with U.S. authorities. While Zhao remains the largest shareholder in Binance, the plea agreement bars him from holding an executive role at the exchange. This makes YZi Labs his primary focus for new ventures and investments.

Co-run with Binance co-founder Yi He, YZi Labs has been actively scouting investment opportunities in high-growth sectors such as Web3 startups, artificial intelligence (AI), and biotechnology. The firm has positioned itself as an independent investment house and has not been spun out of Binance, a point Zhao emphasized to counter any suggestion of a formal connection. However, its activities inevitably draw intense scrutiny due to Zhao’s high-profile regulatory history and the enduring global influence of Binance in crypto markets. The dispute with the Financial Times underscores Zhao’s ongoing effort to distance his personal investment activities from Binance’s compliance legacy.

This public disagreement highlights the heightened media attention surrounding one of the cryptocurrency industry’s most prominent figures. Every move by Zhao is closely watched, and reports about his ventures carry significant weight. The incident also reflects a recurring tension between crypto industry leaders and established financial media outlets, with accusations of misrepresentation often flying in both directions. Zhao’s pointed rebuttal is a clear attempt to control the narrative around his post-Binance endeavors.

Furthermore, Zhao used his response to address what he perceived as a misrepresentation of his legal record. He specifically noted that his U.S. plea deal related to shortcomings in anti-money laundering controls at Binance, not to charges of theft or fraud. This nuanced distinction is crucial for Zhao as he seeks to rebuild his public profile and operate YZi Labs independently. By publicly challenging the FT’s reporting, Zhao is not only defending his current venture but also reinforcing his narrative regarding the nature of his past legal challenges. The episode serves as a reminder that for figures like Changpeng Zhao, managing communications and public perception is nearly as important as managing a multi-billion dollar investment portfolio.