Changpeng “CZ” Zhao, the well-known co-founder and former head of Binance, recently put a stop to rumors about YZi Labs. He stated clearly that his family company, once known as Binance Labs, is not looking for outside money. Nor is it trying to become a massive $10 billion investment fund.
Zhao’s message came through his X account. He directly said, “YZi Labs is not raising external funds.” He added that since the company changed its name, it hasn’t looked for a single outside investor.
CZ desmiente rumores sobre YZi Labs
No está recaudando fondos externos.
No hay conversaciones ni fondo de USD 10.000M.
Opera de forma independiente tras rebranding y foco en IA y biotec. pic.twitter.com/uX8v5JMhBC— Diario฿itcoin (@Blaze Trends)
This statement from Zhao came after several reports surfaced earlier that day. These reports, which quoted YZi Labs Director Ella Zhang, suggested the venture capital firm might turn into a large public investment fund. News outlets claimed Zhang had mentioned a lot of interested outside investors. They also reported her saying the company would eventually “consider converting it into an external fund.”
Zhao dismissed these claims. He stressed that YZi Labs was not “spun off” from Binance. Instead, he said, it operates totally on its own. This backs up what Zhang said before: Binance Labs had worked independently for years, even while using the Binance brand name.
YZi Labs: A New Focus
The name YZi Labs is a play on the names of its co-founders, Zhao and Zhang. The company reorganized in January. This happened shortly after Zhao was released from prison, where he served four months. He had pleaded guilty to breaking the Bank Secrecy Act by not having good enough anti-money laundering programs at Binance.
This relaunch signaled a big shift. YZi Labs is now focusing on growing areas like artificial intelligence (AI) and biotechnology. Zhang had told the Financial Times that the company first needed to build its expertise in these new fields. Only then would it think about taking outside money. “When we have that level of confidence, we will open the door to external investors,” she was quoted saying.
However, Zhao has firmly stated that there are no plans or talks about this right now. “No requests, no discussions,” he emphasized in his post on X. He also pointed out that some news outlets mix up a lack of oversight with doing something wrong. He noted, “Failing in supervision is not the same as stealing. These are very different things that traditional media keep intentionally mixing up.”
Connecting with Binance and Investment History
People have often wondered about the link between Binance and YZi Labs. Zhang and Zhao started Binance Labs together in 2018. But both have consistently said the firm has always operated on its own. Bloomberg had reported that Zhao would take “an active role” after the name change. But it also quoted Zhang saying YZi would work “purely as a family investment vehicle.” YZi Labs currently denies this idea. “We do not identify as this type of office,” a YZi spokesperson told The Block.
In 2022, Binance Labs did raise a $500 million fund with outside investors. These included DST Global Partners and Breyer Capital. But Zhang mentioned that any unused money from that fund was given back. Most of this capital came from Binance itself. This act supports the idea that YZi is not looking for outside money now and is focused on the long haul.
YZi Labs holds a powerful spot among crypto venture capital funds. It has invested in projects like 1inch, Aptos Labs, CertiK, Dune Analytics, LayerZero, Mysten Labs, and Polygon. Zhang noted in past reports that “demand is very high” and many investors want to partner with YZi. But she underlined that the company takes a “super long-term” view. She added that “there is no rush to exit investments” because it’s hard to meet expectations for quick returns.
A Story Under Debate
Zhao claimed that the Financial Times asked him for an interview, promising good coverage. But he couldn’t make it due to scheduling conflicts, and Zhang “had lunch with them first.” This event suggests that Zhang’s statements might have been misunderstood by the media more than once.
YZi Labs is showing its preference to strengthen its position first. It prioritizes independent operations and big goals in new industries. It is cautious about bringing in outside investors. The friction between media interest and the company’s internal plans will likely remain a hot topic in the business world.