CZ Slams Financial Times Over YZI Labs Funding Rumors: “Completely Wrong”
The founder of Binance, Changpeng “CZ” Zhao, has refuted reports that his family office, YZI Labs, is preparing to raise outside capital. Zhao published the refutation on X, describing an article by the Financial Times about the matter as “completely wrong” and filled with “invented information and negative stories”.
The Financial Times report had suggested that YZI Labs, which was founded in January to manage Zhao’s personal assets, was considering opening its investment portfolio to external investors in the future, with a potential investment area of $10 billion. The report cited comments from YZI Labs Managing Director Ella Zhang, stating that the company could become an external fund once it had matured its internal skills.
YZI Labs Operates Independently, Has Not Sought External Capital, Says Zhao
Zhao responded by stating that YZI Labs had never prepared a pitch deck, led a demo, or conducted donations since its inception at the beginning of the year. He also rejected the claim that Binance was involved and insisted that YZI Labs operates independently. “As far as I know, YZI Labs does not raise an external fund. There were no demos, no inquiries, no discussions,” wrote Zhao.
Zhao also pushed back against the characterization of his US legal settlement, in which he pleaded guilty, to a violation of banking secrecy laws. He stated that the case concerned the failure to maintain an appropriate anti-money laundering program and should not be equated with “money laundering violations”, as the report had framed.
YZI Labs’ Investment Strategy and Portfolio
YZI Labs currently manages Zhao’s capital, along with funds from a small group of early Binance investors, including co-founder Yi He. The company primarily invests in cryptocurrency startups but has also supported projects in artificial intelligence and biotechnology. In 2022, it accepted around $300 million from external investors before returning part of this money.
YZI Labs has invested in top-tier companies, including Avalon Labs, a Bitcoin DeFi platform that developed BTC-supported lending, stablecoin, and credit services. The project currently manages over 20,000 BTC and more than $500 million. The company has also made strategic investments in USD.AI, a stablecoin protocol, and Ethena Labs, the protocol behind USDE, the third-largest US dollar-pegged crypto asset.
Conclusion
In conclusion, CZ Zhao has refuted reports that YZI Labs is seeking external capital, stating that the company operates independently and has not sought outside funding. YZI Labs’ investment strategy focuses on long-term investment horizons, with a portfolio that includes cryptocurrency startups, artificial intelligence, and biotechnology. For more information, visit https://cryptonews.com/news/cz-slams-ft-over-yzilabs-funding-rumors-completely-false/
