Changpeng Zhao, known as CZ, pushed back hard on a Financial Times report by posting on X(Twitter). He said the story was false and built on social posts, not facts. CZ wrote that YZi Labs is not seeking outside funding.
He said there is no demo, no pitch deck, and no talks with investors or with Chairman Paul Atkins. He added that YZi Labs was not spun out from Binance. The post came after the FT said YZi Labs was weighing wider access for outside backers, a claim the fund’s leaders reportedly discussed.
CZ’s main denials
CZ said he only skimmed social media and did not read the FT piece. He denied any fundraising activity by YZi Labs, and he also said there was no demo and no pitch materials.
He stressed that the fund has not talked to outside investors. He said there were no communications between him and YZi Labs and Paul Atkins. CZ praised Atkins based on public information, but he insisted the article mixed up facts.
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CZ pushed back on a stronger claim in the FT report, as the article suggested wrongdoing tied to anti-money laundering rules. CZ said that it is wrong, and he explained that failing to enforce rules is not the same as stealing.
He warned that traditional media often blur those two ideas. CZ added that the FT had tried to set up a lunch interview and implied the coverage turned out differently than promised.
What did the FT report?
The Financial Times said YZi Labs might open to external investors, citing Ella Zhang, who leads the fund. The paper also suggested a link between YZi Labs and Binance.
The FT story painted a different picture from what CZ described on X(Twitter). Both sides now offer contrary accounts about the fund’s plans and its ties to Binance.
Possible effects of CZ’s reaction
CZ’s public rebuttal could calm some parties and alarm others, and investors may view the denial as damage control. That could slow any outside interest if backers decide to wait for clearer signals.
Regulators and journalists may press for more documents and clearer records. For YZi Labs, a strong denial can protect its current setup. But it can also draw more attention to the firm. Headlines and further reporting often follow high-profile pushbacks, and the net effect will depend on how the FT and YZi Labs respond next.
YZi Labs’ recent moves
UnoCrypto reported that YZi Labs has boosted its stake in Ethena Labs. The fund will continue to support Ethena as the USDe stablecoin scales, and that follow-up builds on an investment made when the group operated under the Binance Labs name in February 2024.
YZi Labs has kept most of its capital private, and it has managed Zhao’s personal holdings and funding from a small circle of early Binance insiders, including co-founder Yi He.
The disagreement highlights how fast news can move in crypto circles. A single social post can push back on a major news outlet. That can calm some observers and raise questions for others.
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