CZ Denies Explosive Report Claiming YZi Labs Is Raising External Funds

Binance founder Changpeng Zhao shuts down rumors about his venture studio's funding status.

Speculation swirled across crypto circles this week after unverified reports suggested YZi Labs—CZ's incubation arm—was actively seeking external capital. The billionaire entrepreneur took to social media to categorically deny the claims.

Funding Reality Check

YZi Labs operates as Binance's internal innovation hub, backing early-stage Web3 projects without traditional VC involvement. The denial reinforces CZ's longstanding position that the lab functions with internal resources only.

Market observers noted the timing coincides with increased regulatory scrutiny of crypto fundraising models. Another 'move fast and break things' approach hitting regulatory walls—just what the space needs.

CZ's swift rebuttal highlights how quickly misinformation spreads in crypto markets. The episode demonstrates that even rumored funding rounds can trigger market movements before facts emerge.

CZ disputes fundraising as YZi Labs strategy questioned

The founder denied claims that YZi Labs is raising external capital, stating there have been no investor talks, pitch decks, or demos “not even the preparation of one.” He clarified the firm operates independently and was not “spun out” of Binance, contradicting recent reporting that suggested otherwise.

Zhao also pushed back on characterizations of his legal case, stating he pled guilty to a BSA violation, not money laundering, and criticized media outlets for deliberately blurring the distinction. He accused the source of the report of fabricating details and attempting to bait him with promises of favorable coverage.

Also read: Binance Founder CZ Suggests Innovation as India’s Rupee Hits Record Low