Binance Co-Founder Changpeng “CZ” Zhao has rejected claims that YZi Labs, the venture firm he co-founded, is preparing to raise external capital. The clarification follows reports suggesting the firm might convert into a $10 billion investment fund open to outside investors.
“YZiLabs is not raising [an] external fund,” Zhao wrote in a post published Tuesday, stating that since its rebranding, the firm has not initiated any outreach, negotiations, or discussions with potential backers. He also stressed that the company “operates independently,” dismissing speculation that YZi was spun out of Binance.
The statements come in response to comments attributed to Ella Zhang, YZi’s other co-founder, who was cited as saying the firm may eventually accept outside capital once it builds more expertise in sectors like artificial intelligence and biotech. Zhang and Zhao previously co-founded Binance Labs in 2018, which rebranded to YZi Labs earlier this year.
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
