CZ Rejects FT Report on YZiLabs, Denies Fundraising or External Investors

Key Points

• CZ says YZiLabs has not raised funds, prepared a pitch deck, or held a demo
• He confirms YZiLabs was not spun out of Binance and operates independently
• CZ clarifies plea was for AML program failure, not money laundering violations

Binance founder Changpeng Zhao, known as CZ, has dismissed a Financial Times report about YZiLabs seeking outside investors. He stated on social media that the claims of a fundraising process, a demo, or a pitch deck are completely false.

According to CZ, YZiLabs has not pursued a single external investor since its rebranding and has held no discussions regarding funding. He emphasized that no preparation of a pitch deck has ever been made and no demonstrations were conducted for investors.

Clarifications on Independence, Legal Issues, and Media Coverage

CZ also stressed that YZiLabs operates independently and was not spun out of Binance, contradicting the narrative described in the FT article. He added that no communications occurred with former SEC Chairman Paul Atkins, despite suggestions of a private demo.

On legal matters, CZ clarified his guilty plea involved a violation of the Bank Secrecy Act for inadequate anti-money laundering measures. He rejected FT’s framing of the case as “money laundering violations,” noting that failure to police differs from theft.

Addressing his interactions with the media, CZ said FT reporters repeatedly sought a lunch interview under the promise of positive coverage. He explained that he declined, and Binance executive Ella Zhang instead attended, after which the disputed report appeared.

“FT tried for a long time to lure me to a lunch interview, promising it will be a positive coverage,” CZ wrote. He added, “It was a trap! Cancelling that lunch now,” suggesting mistrust in the publication’s journalistic ethics.

CZ concluded by reiterating respect for Chairman Atkins while maintaining that FT’s portrayal of YZiLabs was inaccurate. He emphasised his continued commitment to transparency and rejected narratives suggesting YZiLabs was raising external funds.