TLDR
- Changpeng Zhao denies reports that YZi Labs will seek external investors in the near future.
- Zhao emphasizes that YZi Labs operates independently and has not pursued outside capital since its rebranding.
- YZi Labs head Ella Zhang had earlier suggested the firm might consider external investment in the future.
- Zhao clarifies that YZi Labs was not “spun out” of Binance and operates separately from the exchange.
- Zhao responds to media misinterpretations of Zhang’s previous comments regarding YZi Labs’ investment approach.
Binance co-founder Changpeng Zhao has firmly denied reports that YZi Labs plans to open up to outside investors. Zhao rejected claims made in a recent Financial Times article that YZi Labs might transition into a $10 billion externally-facing fund. The comments came from YZi Labs’ Head, Ella Zhang, who had reportedly indicated that the firm may eventually seek external capital.
Changpeng Zhao Refutes Claims of External Investment in YZi Labs
In a statement posted on X, Zhao addressed the report, stating, “YZiLabs is not raising [an] external fund.” He emphasized that since its rebranding, YZi Labs has not engaged with any external investors. Zhao further explained, “No requests, no discussions” have taken place regarding outside investment.
Complete false news from FT, with fake/wrong/made-up info and negative narratives. This is just from what I gathered on social media, I did not even read the FT article. No subscription.
As far as I know:
YZiLabs is not raising external fund.
There is no demo. WTF is a demo… https://t.co/muO09pX8Bz— CZ
BNB (@cz_binance) September 23, 2025
Zhao’s comments directly contradict those of Zhang, who allegedly told the Financial Times that the firm might consider opening up to external capital in the future. Zhang reportedly indicated that external investor interest remains high but emphasized that YZi Labs is still focused on building expertise in sectors such as AI and biotech before considering such a move.
Zhao also took the opportunity to clarify that YZi Labs operates independently from Binance. He rejected the idea that the firm was “spun out” of Binance, despite previous statements from Zhang suggesting otherwise. “YZiLabs operates independently,” Zhao said, refuting any claims of a close connection between the venture firm and the cryptocurrency exchange.
The firm rebranded from Binance Labs to YZi Labs in January, and Zhao highlighted the firm’s independence after his release from prison. Zhao served a four-month sentence for a violation of the Bank Secrecy Act, which he said was due to inadequate anti-money laundering policies. He also noted the difference between failing to enforce regulations and engaging in theft, an issue he believes media outlets often confuse.
Previous Reports and Zhang’s Statements on YZi Labs’ Future
This is not the first time Zhang’s statements have been misinterpreted. Earlier this year, Bloomberg reported that Zhao would take a more active role at YZi Labs following its rebranding. Zhang was quoted saying that YZi Labs would operate purely as a family office investment vehicle, a claim that the firm has since denied.
YZi Labs has a strong presence in the crypto industry, with investments in high-profile projects such as Aptos Labs, Polygon, and CertiK. Zhao’s rebuttal underscores the firm’s focus on long-term, strategic investments, which may not align with the typical external funding models. Zhang reportedly noted that the firm takes a “super long-term” approach to venture funding, which includes avoiding hasty exits from investments.
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Source: https://blockonomi.com/binance-co-founder-zhao-refutes-claims-of-outside-capital-for-yzi-labs/