CZ Condemns Media Misrepresentation as Crypto Seeks Regulatory Clarity

Binance co-founder Changpeng “CZ” Zhao has dismissed a Financial Times report alleging that his venture firm, YZi Labs, is preparing to open a $10 billion fund to external investors. In a series of public statements on X, Zhao denied all claims, asserting that the firm has not engaged in fundraising discussions, pitch deck preparations, or investor demonstrations since its rebranding earlier this year. He characterized the FT’s claims as “completely false,” accusing the outlet of fabricating details and misrepresenting his legal history. “YZiLabs is not raising external fund. There is no demo. WTF is a demo… there is no pitch deck for YZiLabs ever,” Zhao wrote, emphasizing the firm’s independence from Binance and rejecting the notion that it was “spun out” of the exchange. The denial comes amid heightened scrutiny of crypto fundraising practices and regulatory pressures, with Zhao reiterating that YZi Labs operates as a private entity focused on long-term investments in blockchain, artificial intelligence, and biotechnology.

The FT report, which cited comments from YZi Labs co-founder Ella Zhang, suggested the firm had received interest from external investors and even referenced a private demonstration requested by U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins. However, Zhao categorically denied any such interactions, stating there had been “no communications with Chairman Paul Atkins” and no investor outreach since the firm’s rebrand. He also clarified that his legal case—pleading guilty to a Bank Secrecy Act (BSA) violation in November 2023—related to Binance’s failure to maintain an adequate anti-money laundering program, not money laundering itself. Zhao accused media outlets of conflating the two, a distinction he argued was critical for public understanding. The founder’s response underscored his intent to separate YZi Labs from Binance’s compliance challenges, which included a $4.3 billion DOJ settlement and his resignation as CEO.

YZi Labs’ current strategy, as outlined by Zhao, prioritizes independent, long-term investments over short-term returns. The firm has backed projects such as Avalon Labs, Ethena, and USD.AI, focusing on blockchain infrastructure and AI-driven financial tools. Zhao emphasized that the firm’s portfolio includes both digital assets and traditional sectors, though he did not specify the proportion of crypto holdings. The denial of external fundraising aligns with YZi Labs’ current operational model, which manages Zhao’s personal wealth and a small group of Binance executives. While the FT report speculated on future regulatory hurdles if the firm were to accept U.S. investors, Zhao stressed that no such plans are in motion. His firm stance reflects a broader caution in the crypto space, where regulatory uncertainty and past compliance failures continue to shape investor sentiment.

The controversy highlights the challenges of navigating media narratives in the crypto industry. Zhao accused the FT of attempting to “bait” him with promises of favorable coverage during a failed interview, a claim that underscores the tension between traditional media and crypto figures. The founder’s public rebuttal also included a critique of media framing, particularly the conflation of legal violations with criminal activity. “I plead to a single violation of BSA, failure to maintain an adequate anti-money laundering program,” he wrote, contrasting this with the FT’s characterization of his legal history. This distinction is significant, as regulatory clarity remains a key barrier for institutional adoption in crypto.

YZi Labs’ current trajectory appears to focus on incubating Web3 projects while expanding into AI and biotech. Zhao reiterated his commitment to “impact over returns,” a theme consistent with the firm’s recent investments in infrastructure and innovation. The founder’s denial of external fundraising suggests a strategy of maintaining control over the firm’s capital and operations, a move that could appeal to long-term investors but may limit immediate growth opportunities. As the crypto market continues to grapple with regulatory shifts, YZi Labs’ approach will likely be scrutinized for its balance between innovation and compliance.

Source: [1] CZ Denies Report Of YZi Labs Raising External Fund (https://www.cryptotimes.io/2025/09/24/cz-denies-report-of-yzi-labs-raising-external-fund/) [2] CZ Slams FT Over YZi Labs Funding Rumors: “Completely False” (https://finance.yahoo.com/news/cz-slams-ft-over-yzi-192550052.html) [3] CZ Slams FT Over YZi Labs Report, Says No Fundraising, No … (https://blockonomi.com/cz-slams-ft-over-yzi-labs-report-says-no-fundraising-no-demo-no-pitch-deck/) [4] CZ Denies Explosive Report Claiming YZi Labs Is Raising External … (https://www.btcc.com/en-US/square/CryptotimesIO/1004182) [5] CZ Denies Financial Plans for YZi Labs Amid FT Claims (https://coinbuzznow.com/news/cz-denies-ft-claim-fundraising-10b-yzi-labs/) [6] Criminal Division | United States v. Changpeng Zhao (https://www.justice.gov/criminal/case/united-states-v-changpeng-zhao) [7] Binance founder CZ pleads guilty to money laundering … (https://www.npr.org/2023/11/21/1214466415/binance-cz-changpeng-zhao-pleads-guilty-settlement-crypto-doj) [8] Binance CEO Changpeng Zhao Quits, Pleads Guilty, and … (https://www.wired.com/story/binance-cz-ceo-quits-pleads-guilty-breaking-law/) [9] Binance DOJ settlement $4.3 billion. CZ steps down, … (https://www.ledgerinsights.com/binance-doj-settlement-cz-steps-down/) [10] Binance and CEO ‘CZ’ plead guilty to federal charges (https://techcrunch.com/2023/11/21/binance-to-pay-4-3b-in-fines-and-ceo-cz-to-step-down-plead-guilty-to-anti-money-laundering-charges/) [11] YZi Labs is Not Open for External Investors: Binance’s CZ Says (https://coinpedia.org/news/yzi-labs-is-not-open-for-external-investors-binances-cz-says/) [12] Ex-Binance CEO CZ Slams FT Report on YZi Labs as ’Negative (https://www.btcc.com/en-US/square/Newsbtc/1006566) [13] CZ Denies $10B YZi Labs Fund Report Amid Crypto Controversy (https://thefinancialanalyst.net/2025/09/24/cz-denies-10b-yzi-labs-fund-report-amid-crypto-controversy/)