CZ Refutes YZi Labs Fundraising Claims as Crypto Regulation Faces Increased Scrutiny

Changpeng “CZ” Zhao, the founder of Binance, has rejected a Financial Times (FT) article that claimed his family office, YZi Labs, is seeking to secure funding from outside investors. In a post on social media, Zhao described the report as containing “fabricated details and misleading narratives,” stressing that YZi Labs has not pursued any fundraising since it rebranded in January 2025. The FT’s coverage referenced comments from YZi Labs CEO Ella Zhang, who indicated the company might eventually become a fund for external investors after its internal operations matured. Zhao disputed these points, asserting that the firm has not created a pitch deck, hosted demonstrations, or initiated talks with regulators or potential investors. He further clarified that YZi Labs is not affiliated with Binance and was not separated from the exchange.

The FT also reported that YZi Labs, with a valuation of $10 billion, had drawn interest from outside investors and had previously received $300 million in 2022 before returning a portion of those funds. Zhao denied these claims, stating that no external capital is being sought. He also accused the FT of mischaracterizing his legal background, particularly regarding his U.S. plea agreement over anti-money laundering shortcomings at Binance. Zhao emphasized that these compliance matters should not be confused with money laundering accusations, as the FT’s article had implied.

YZi Labs, which oversees Zhao’s personal assets and investments from a select group of early Binance team members, has broadened its investment scope to include artificial intelligence and biotechnology in addition to crypto. The company currently has a team of 12 and focuses on long-term investment strategies rather than quick profits. Its portfolio features notable investments such as Avalon Labs, a

DeFi platform, and Ethena Labs, which develops a stablecoin protocol. Zhao reaffirmed that YZi Labs remains a privately held entity and has no intention of accepting outside funding, even as institutional interest in crypto investment vehicles continues to grow.

This dispute has renewed attention on CZ’s role and the regulatory hurdles that crypto-focused firms face. The FT article also claimed that the U.S. Securities and Exchange Commission (SEC) had expressed interest in YZi Labs’ investments and had requested a “private demo” of its portfolio companies. Both Zhao and Zhang rejected these assertions, clarifying that their recent demonstration event was open to the public and not a private session with regulators. The disagreement highlights the increasing regulatory scrutiny on crypto projects, especially those associated with prominent figures who have faced legal challenges.

YZi Labs’ separation from Binance is central to its business approach. Although Zhao resigned as Binance’s CEO in November 2023 as part of a $4.3 billion settlement with U.S. authorities, he remains the company’s largest shareholder. The family office’s emphasis on long-term, impact-oriented investments stands in contrast to Binance’s operational past, which has faced ongoing regulatory investigations. Zhao’s public rejection of the fundraising rumors is consistent with his broader strategy to distinguish YZi Labs from Binance’s compliance history, even as the firm’s activities remain under the watch of investors and regulators.

This situation also underscores the persistent issues of transparency and credibility within the crypto sector. CZ’s legal history and Binance’s regulatory struggles continue to influence perceptions of his new ventures, making it challenging to fully separate YZi Labs from Binance’s legacy. Experts point out that institutional investors are still wary of crypto funds, especially those linked to individuals with regulatory infractions. While YZi Labs’ current investments and direction point toward innovation, its future ability to attract outside capital will depend on how well it meets regulatory standards and rebuilds trust with potential partners.

As the cryptocurrency industry develops, the conflict between CZ and the FT illustrates the difficulties of fostering innovation while maintaining accountability. For now, YZi Labs remains a private firm, but its future will be shaped by both its investment philosophy and the evolving regulatory landscape. The resolution of this dispute could influence how crypto companies handle public perception and regulatory relations in a sector facing increasing oversight.