CZ Responds: YZi Labs Investment Claims

Update (September 23, 7:43 PM UTC): The content below has been revised to include a statement from Changpeng Zhao refuting the assertions made in the Financial Times article.

Changpeng “CZ” Zhao has publicly disputed a report by the Financial Times suggesting that his $10 billion investment entity, YZi Labs, is considering opening its doors to outside investment and welcoming external stakeholders.

In a social media announcement made on Tuesday, Zhao labeled the report as “completely untrue,” firmly denying that YZi Labs has actively sought external investors, developed any preparatory investment materials, or conducted presentations for regulatory authorities.

Earlier that same day, the Financial Times stated that YZi Labs, responsible for managing Zhao’s personal assets and funds originating from early Binance participants, was exploring the possibility of accepting external investments. The FT also noted potential interest from the Securities and Exchange Commission (SEC).

The Financial Times further claimed that the fund accepted approximately $300 million from outside sources in 2022, however, a portion was subsequently returned due to the already substantial amount of capital under management.

“There is consistently strong interest from outside investors,” Ella Zhang, the head of the fund, was quoted as saying to the Financial Times. “At some point, we will consider transforming it into an externally-facing investment vehicle. However, we feel it is not the right time just yet.”

YZi Labs’ investment portfolio includes prominent ventures in the cryptocurrency and Web3 sectors, such as Aptos Labs, Polygon, 1inch Network, and Sky Mavis, as well as infrastructure and security enterprises like LayerZero, Mysten Labs, and CertiK. According to data from Dealroom, the fund has investments in over 230 companies.

Related: Standard Chartered Venture Arm Eyes $250M for Digital Asset Fund: Report

SEC Reportedly Seeks Private Showcase of YZi Labs Investments

The Financial Times reported that the SEC has recently requested a private demonstration showcasing companies supported by YZi Labs, following the SEC chair’s absence from the fund’s demonstration event at the New York Stock Exchange. This move indicates a potentially more favorable attitude toward cryptocurrency from US regulatory bodies under the Trump administration.

“Paul Atkins and other commissioners exhibit a very receptive approach,” Zhang stated. Atkins assumed the role of SEC chair in April 2025.

In a separate social media post, Zhang also refuted these claims, stating that YZi Labs has no plans to raise external LP capital. She clarified that the fund has always functioned independently and underwent a rebranding from Binance Labs, rather than being “spun out” from Binance.

“Our Easy Residency Demo Day at the NYSE brought together a diverse group of investors, developers, and regulators,” Zhang shared on X. “There was no ‘private demo’; the complete startup presentations will be made publicly available.”

Zhao stepped down from his position at Binance last year after admitting guilt to a US criminal charge related to the insufficient implementation of Anti-Money Laundering (AML) measures.

He completed a four-month prison term and is currently seeking a pardon from US President Donald Trump. Despite his resignation, Zhao remains Binance’s largest shareholder.

Cointelegraph has contacted YZi Labs for comment but has not received a response as of publication.

Related: Institutional Interest Surges Alongside New Crypto Treasury Offerings and SEC Regulatory Adjustments

Galaxy Digital’s Inaugural External Fund Accumulates $175 Million

Investment funds specifically targeting the cryptocurrency space are experiencing increasing investor appetite. In June, Galaxy Digital successfully raised $175 million for its first venture fund backed by outside capital, exceeding its initial target of $150 million.