Binance founder CZ refutes FT’s claims of fundraising for $10B YZi Labs as ‘fake’

Binance founder Changpeng “CZ” Zhao has dismissed as false a Financial Times report claiming that his household workplace, YZi Labs, was contemplating elevating capital from exterior buyers.

Zhao stated in a social media submit that the agency, valued at about $10 billion, stays a non-public automobile for his wealth and has no plans to open to outdoors backers.

Rebuttal to FT reporting

The FT report, citing YZi Labs chief govt Ella Zhang, steered that the agency may evolve right into a fund for third-party buyers as soon as its operations mature. Zhao countered that no demo, pitch deck, or fundraising roadmap exists for the agency, which stays a non-public entity.

He pressured that since its rebranding earlier this 12 months, YZi Labs has not sought a single outdoors investor, nor has it held talks with regulators or monetary figures such as former SEC Commissioner Paul Atkins, who was talked about within the report.

Zhao characterised the article as full of “made-up data and unfavourable narratives,” and stated he didn’t learn the piece himself as a consequence of its subscription paywall however was alerted by commentary on social media.

He additionally accused the outlet of misrepresenting his authorized document, noting that his U.S. plea deal associated to shortcomings in anti-money laundering controls quite than theft or fraud.

YZi Labs’ function

YZi Labs was based in January to handle Zhao’s private fortune after he stepped down as chief govt of Binance in November 2023 as half of a $4.3 billion settlement with U.S. authorities.

The household workplace, co-run with Binance co-founder Yi He, has been scouting investments in sectors spanning Web3 startups, AI, and biotechnology.

The agency’s actions have drawn scrutiny, given Zhao’s high-profile regulatory battles and Binance’s world affect in crypto markets. While Zhao stays the biggest shareholder in Binance, he’s barred from holding an govt function on the change.

Meanwhile, YZi Labs has positioned itself as an impartial funding home and has not been spun out of Binance, opposite to FT’s suggestion.

The dispute highlights each Zhao’s efforts to distance his private ventures from Binance’s compliance legacy and the heightened media consideration round one of the crypto business’s most distinguished figures.

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