Clarification on Yzi Labs’ Funding Strategy
Changpeng “CZ” Zhao has publicly refuted a Financial Times report that suggested YZi Labs, the investment vehicle managing his personal wealth, was considering opening its $10 billion portfolio to external capital. The definitive denial, issued via social media, is a direct message to family offices, institutions, and compliance officers focused on governance and risk, confirming that no such plans are underway.
CZ and YZi Labs head Ella Zhang have both stated that the characterization of their discussing external fundraising with regulators or investors is incorrect. CZ specifically clarified that there have been no conversations with SEC Chairman Paul Atkins, no creation of a pitch deck, and no demos or discussions aimed at raising external capital since the firm’s rebranding. The original Financial Times article had cited Zhang mentioning investor interest and a future possibility of becoming an “external-facing fund”, but both principals have since labeled the report as containing “false news” and “made-up info” .
Yzi Labs’ Structure and Investment Focus
YZi Labs rebranded from Binance Labs in January 2025 and operates independently from the Binance exchange. While often described as a family office, the firm has indicated its structure differs from a traditional one, focusing instead on backing high-impact startups in Web3, artificial intelligence, and biotechnology, rather than estate planning and generational capital preservation. The firm manages the capital of CZ and a small circle of early Binance executives, including co-founder Yi He, and is known for its “super long-term” investment approach.
Regulatory context and Distinctions
CZ’s response also addressed the characterization of his legal history, emphasizing that his 2023 guilty plea was for a single violation of the Bank Secrecy Act for failing to maintain an adequate anti-money laundering program at Binance, which is distinct from charges related to money laundering itself . This clarification is part of a broader effort to distinguish YZi Labs’ current operations from past regulatory issues associated with Binance.
Current Status and Implications
For now, the possibility of YZi Labs accepting third-party capital is off the table. The firm’s current strategy remains focused on deploying internal capital across its portfolio, which includes investments in projects such as Polygon, Aptos, and Ethena Labs. This clear stance aims to provide certainty to the market and underscores that any significant shift in governance, such as introducing external shareholders and the accompanying compliance requirements, is not being considered in the foreseeable future. The situation highlights the importance of monitoring official statements from company principals for accurate governance and risk assessment.
