CZ refutes rumors about raising billions for YZi Labs

Changpeng “CZ” Zhao, founder of Binance, came out in defense of YZi Labs after a Financial Times report suggested that the investment fund might open its doors to external investors. The denial was clear and direct: CZ publicly challenged the narrative presented, stating that it is “false news with fabricated information.”

Who is CZ and what is the role of YZi Labs

To understand the controversy, it is important to know the involved parties. CZ is the co-founder and central figure of Binance, the world’s largest cryptocurrency exchange. After stepping down as CEO in 2023 due to regulatory issues that led to a guilty plea, CZ spent four months in prison the following year. Since his release, he has resumed a more active role in his investment projects.

YZi Labs, which originated as Binance’s venture capital arm (Binance Labs) and was renamed in early 2026, operates under CZ’s supervision. The company is often characterized as the founder’s family office, although YZi Labs itself contests this classification, arguing that its structure and operations differ significantly from a traditional family office.

The rumor about external fundraising

The Financial Times publication on Tuesday suggested that YZi Labs might be “open to the possibility” of transforming into an investment fund capable of raising resources from external investors, potentially mobilizing up to US$10 billion. This information sparked speculation in the crypto sector about the company’s future plans.

CZ quickly responded on social media, denying the narrative. “As far as I know, YZi Labs is not raising external funds,” declared the founder. He also took the opportunity to clarify the Financial Times’ characterization of his 2023 guilty plea, explaining that he admitted to a single violation of the Bank Secrecy Act (BSA) related to failing to maintain an adequate anti-money laundering program—not criminal charges of money laundering itself, as the report suggested.

Ella Zhang’s response and YZi Labs’ stance

Ella Zhang, CEO of YZi Labs, also spoke on the matter, corroborating CZ’s position. “The Financial Times headline suggesting that YZi Labs plans to raise funds from external investors is false. We do not have such a plan,” Zhang stated in a social media post.

The company’s leadership emphasized that YZi Labs’ true mission focuses on identifying and supporting high-impact startups in the Web3, artificial intelligence, and biotechnology sectors. According to an official statement, YZi Labs’ operational structure aims to differentiate itself from traditional family offices, whose focus lies in succession planning, tax structuring, and wealth preservation across generations.

Context of recent changes

The renaming of Binance Labs to YZi Labs marks a turning point in CZ’s trajectory after stepping down as CEO. Since his release from prison, the founder has intensified his involvement in investment initiatives, using YZi Labs as the main vehicle to channel his financial resources into strategic opportunities within the crypto ecosystem.

The vehement denial of the rumor about raising billions highlights CZ’s intention to maintain a lean and focused operational structure, aligned with YZi Labs’ original vision of driving innovation in emerging sectors without relying on external capital.