CZ Slams FT Over YZi Labs Funding Rumors: ’Completely False’
Binance CEO Changpeng Zhao obliterates Financial Times report claiming YZi Labs received backing from the exchange—calling the allegations 'completely false' in a blistering social media rebuttal.
The Rumor Mill Churns
Speculation erupted after FT suggested Binance quietly funded the blockchain research lab through shell entities. CZ's response cut through the noise with trademark bluntness—no corporate speak, no carefully worded PR statements. Just a single post that sent crypto Twitter buzzing.
Truth or Consequences
Industry watchers note this marks another chapter in the ongoing tension between traditional financial media and crypto's decentralized ethos. The timing's curious too—coming just as regulatory scrutiny intensifies globally. Maybe some old-school journalists still think crypto operates like shadowy hedge funds playing shell games with investor money.
Meanwhile, Binance continues expanding its ecosystem while critics keep trying to connect dots that don't exist. Typical finance reporters—always looking for conspiracies in transparent ledgers.
Changpeng Zhao may open his $10B investment vehicle to external capital in future, as YZi Labs, spun out of Binance, builds teams and assesses timing.#CZ #YZiLabs https://t.co/rT5dIOUPw6
— Cryptonews.com (@cryptonews) September 23, 2025
Citing comments from YZi Labs chief executive Ella Zhang, the newspaper said the firm could become an external fund once it had matured its internal capabilities.
Zhang was quoted as saying there was steady interest from outside investors and that bringing in new capital WOULD represent a “huge responsibility.”
YZi Labs Operates Independently, Has Not Sought External Capital, Says Zhao
In response, Zhao said that YZi Labs has never prepared a pitch deck, held a demo, or engaged in fundraising discussions since its rebranding earlier this year.
He also rejected the claim that the company was spun out of Binance, insisting it operates independently. “As far as I know: YZiLabs is not raising external fund,” Zhao wrote. “There has been no demo, no requests, no discussions.”
Complete false news from FT, with fake/wrong/made-up info and negative narratives. This is just from what I gathered on social media, I did not even read the FT article. No subscription.
As far as I know:
YZiLabs is not raising external fund.
There is no demo. WTF is a demo… https://t.co/muO09pX8Bz
Zhao further pushed back on the FT’s characterization of his U.S. legal settlement, in which he pleaded guilty to violating the Bank Secrecy Act. He said the case concerned failure to maintain an adequate anti-money laundering program and should not be equated with “money laundering violations,” as the report had framed it.
YZi Labs currently manages Zhao’s capital along with funds from a small circle of early Binance executives, including co-founder Yi He. The firm invests mainly in cryptocurrency start-ups but has also backed projects in artificial intelligence and biotechnology.
In 2022, it briefly accepted around $300 million from outside investors before returning part of that money.
The FT report noted that if YZi Labs eventually admitted U.S. investors, the firm would face heightened regulatory oversight, particularly as policymakers in Washington signal a more accommodative approach to digital assets.
Zhao, however, emphasized that no such MOVE is under way. He also criticized the media outlet for what he described as misleading coverage, adding that he had declined an invitation for a lunch interview, which was later attended by Zhang. “It was a trap!” he wrote on X.
At present, YZi Labs employs a 12-person team focused on long-term investment horizons rather than short-term returns.
YZi Labs Backs Avalon and Ethena as Part of New Investment Strategy
In January, Binance Labs, the venture arm of crypto exchange Binance, rebranded as YZi Labs, showing a shift toward broader investment horizons.
The firm, co-led by Binance founder Changpeng Zhao (CZ) and longtime partner Ella Zhang, now focuses on blockchain, artificial intelligence, and biotechnology, while retaining ties to the Binance ecosystem.
@BinanceLabs has rebranded to YZi Labs, expanding its focus to include AI and biotech investments.#CZ #AI #Binancehttps://t.co/Tb3FgMgnd4
Zhao, who stepped back from his exchange role last year, said the transition reflects his long-term vision to support technologies with societal and environmental impact.
“I’m a long-term investor who cares about impact, not returns,” he noted, adding that YZi Labs will continue incubating Web3 projects while expanding into new sectors.
The firm has already backed high-profile ventures. In May, it invested in Avalon Labs, a Bitcoin DeFi platform developing BTC-backed lending, a stablecoin known as USDa, and credit services. The project currently manages over 20,000 BTC and more than $500 million in total value locked.
CZ YZi Labs Avalon has invested in @AvalonFinance, growing a BTC-collateralised market with USDa stablecoin, lending and credit services while targeting global licenses. #Bitcoin #DeFi @yzilabs @cz_binancehttps://t.co/EEO1ihE3hw
Notably, in August, the firm said it made a strategic investment in USD.AI, a stablecoin protocol designed to bring infrastructure finance (InfraFi) on-chain by providing hardware-backed credit to AI operators.
YZi Labs also expanded its position in Ethena Labs, the protocol behind USDe, now the third-largest U.S. dollar-pegged crypto asset with $13 billion locked.
YZi Labs has increased its Ethena stake as the USDe synthetic stablecoin reaches $13 billion TVL milestone despite regulatory challenges.#Ethena #Stablecoinhttps://t.co/FCfFH2bSfE
The renewed funding will accelerate integration across exchanges and DeFi platforms while supporting new products, including a compliant stablecoin and an institutional settlement layer.
