Unpacking the Controversy: Binance Co-founder’s Battle with Financial Times

In a lively clash of narratives, Binance co-founder Changpeng Zhao—widely known as CZ—has challenged claims by the Financial Times regarding YZi Labs’ financial strategies and his past legal entanglements. Allegations originated from a Financial Times piece suggesting YZi Labs, with ambitions of becoming a formidable $10 billion venture fund, was actively seeking external funding.

Insight from Financial Times Sparks Debate

The original report, drawing on statements from YZi Labs’ head Ella Zhang, speculated about the company’s preparedness to welcome external investments. Although intrigued by prospective investors, Zhang indicated the timing wasn’t right and highlighted YZi’s commitment to building expertise in AI and biotech before progressing with such transformations.

This speculation stirred the crypto community, positing whether YZi might pivot from its private management akin to a family office towards a more traditional venture capital powerhouse, amplifying its crypto investment leverage.

CZ’s Firm Rebuttal Against Misinformation

Swift in his response, CZ utilized social platform X to dismantle these assertions deemed “entirely incorrect.” In a point-by-point clarification, he emphasized:

• YZi Labs has no intention of pursuing external fundraising.
• No presentations or fundraising pitches were ever prepared.
• Since the company’s rebranding, there has been no engagement with outside investors.
• YZi Labs remains a standalone entity, not a Binance offshoot.

Additionally, CZ addressed mischaracterizations of his legal history, asserting that while he acknowledged failures in internal controls related to the Bank Secrecy Act, this was distinct from involvement in “money laundering.” He criticized traditional media for blurring these lines.

Media Ethics Under the Microscope

CZ shared his frustration with the Financial Times, recounting a history of proposed interviews promising positive coverage. Following a canceled lunch arrangement that Zhang attended instead, CZ was dismayed to find the article centered on speculative funding, leading him to question the integrity of the media’s approach.

The Evolution from Binance Labs to YZi Labs

Established in 2018, Binance Labs—founded by CZ and Ella Zhang—garnered attention with a $500 million fund in 2022, primarily bankrolled by Binance itself. Post-restructuring and rebranding as YZi Labs, the entity signaled its independence and continued to make impactful crypto investments in entities such as Aptos and Polygon.

Emphasizing long-term objectives rather than immediate exits, YZi Labs’ strategy reflects CZ’s broader vision and rebuts recent claims, underscoring the ongoing narrative of strategic prudence over rushed decisions.