CZ Slams ’False’ Report Claiming YZi Labs Seeks Outside Investors
Binance CEO Changpeng Zhao just torched what he calls completely fabricated reporting about his venture arm's funding strategy.
The Backstory
Rumors swirled that YZi Labs—CZ's crypto investment powerhouse—was scrambling for external capital. The narrative suggested Binance's venture arm needed outside money to stay competitive.
CZ's Blunt Response
Zhao didn't mince words, calling the report '100% false' and questioning the motives behind such claims. His direct rebuttal cuts through the noise surrounding Binance's financial health.
Market Impact
The denial comes as crypto ventures face increased scrutiny from traditional finance skeptics—the same folks who still think blockchain is just for buying pizza. Binance continues operating with what appears to be fortress-level balance sheet strength.
Truth remains the ultimate bull market catalyst—and CZ just injected a heavy dose.
As far as I know:
YZiLabs is not raising external fund.
There is no demo. WTF is a demo… https://t.co/muO09pX8Bz — CZ
However, Zhao noted that his response to the Financial Times report was based on information he encountered on social media. He added that he has not read the article in question and does not hold a subscription to the publication.
The Financial Times reported that YZi Labs, which oversees Zhao’s personal wealth and investments from early Binance insiders, was reportedly considering opening the fund to external investors and had recently attracted interest from the U.S. Securities and Exchange Commission (SEC). The article noted that the fund accepted roughly $300 million in outside capital in 2022 but later returned a portion, citing the already substantial scale of assets under management.
The Financial Times also reported that the SEC recently requested a private demonstration of companies backed by YZi Labs, following SEC Chair Paul Atkins’ absence from the fund’s demo day at the New York Stock Exchange. Zhao denied these claims, stating that no demo took place and that neither he nor YZi Labs had any communications with Atkins.
Additionally, the report referenced comments from YZi Labs head Ella Zhang, who noted that there is consistently strong interest from external investors. “We will eventually consider turning it into an external-facing fund. We just think it’s not there yet,” Zhang reportedly stated.
Zhao claimed that the publication attempted to entice him into a lunch interview, promising favorable coverage. Unable to attend, he said Ella Zhang attended the lunch instead. Zhao described the meeting as a “trap” and subsequently canceled his own scheduled interview with the outlet.
Last year, Zhao stepped down as CEO of Binance but continues to hold the position of the exchange’s largest shareholder. His resignation followed a guilty plea to a U.S. criminal charge for failing to implement Anti-Money Laundering (AML) controls, which led to a four-month prison sentence.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
