Michaela
Binance founder Changpeng “CZ” Zhao has challenged a report by the Financial Times that claimed his $10 billion investment firm, YZi Labs, is preparing to accept outside capital and external investors in response to growing demand.
Key points:
- CZ Zhao denied the Financial Times report, stating YZi Labs is not raising external funds, preparing a demo, or seeking outside investors.
- The Financial Times reported that YZi Labs had previously accepted outside capital, attracted SEC interest, and considered opening the fund to external investors, claims Zhao disputes.
- Zhao stepped down as Binance CEO last year following a guilty plea for AML violations but remains the largest shareholder and is seeking a presidential pardon.
“Complete false news from FT, with fake/wrong/made-up info and negative narratives,” Zhao wrote in an X post. Zhao further stated in his post that, to his knowledge, YZi Labs is not raising an external fund, has not prepared a demo or pitch deck, and is not seeking investment from outside parties.
However, Zhao noted that his response to the Financial Times report was based on information he encountered on social media. He added that he has not read the article in question and does not hold a subscription to the publication.
The Financial Times reported that YZi Labs, which oversees Zhao’s personal wealth and investments from early Binance insiders, was reportedly considering opening the fund to external investors and had recently attracted interest from the U.S. Securities and Exchange Commission (SEC). The article noted that the fund accepted roughly $300 million in outside capital in 2022 but later returned a portion, citing the already substantial scale of assets under management.
The Financial Times also reported that the SEC recently requested a private demonstration of companies backed by YZi Labs, following SEC Chair Paul Atkins’ absence from the fund’s demo day at the New York Stock Exchange. Zhao denied these claims, stating that no demo took place and that neither he nor YZi Labs had any communications with Atkins.
Additionally, the report referenced comments from YZi Labs head Ella Zhang, who noted that there is consistently strong interest from external investors. “We will eventually consider turning it into an external-facing fund. We just think it’s not there yet,” Zhang reportedly stated.
Zhao claimed that the publication attempted to entice him into a lunch interview, promising favorable coverage. Unable to attend, he said Ella Zhang attended the lunch instead. Zhao described the meeting as a “trap” and subsequently canceled his own scheduled interview with the outlet.
Last year, Zhao stepped down as CEO of Binance but continues to hold the position of the exchange’s largest shareholder. His resignation followed a guilty plea to a U.S. criminal charge for failing to implement Anti-Money Laundering (AML) controls, which led to a four-month prison sentence.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
