Changpeng Zhao has refuted claims in a media report that his venture capital firm, YZi Labs, is preparing to secure funds from outside investors.
A report in the Financial Times suggested that the $10 billion investment vehicle was moving towards accepting external capital. However, Zhao countered this in a statement posted on X, dated September 23, labeling the report as “completely untrue”.
Zhao emphasized that YZi Labs has not engaged in any fundraising activities, has not developed any materials for that purpose, nor has it presented its operations to regulatory bodies to solicit investment.
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According to the Financial Times, the fund, which oversees Zhao’s personal wealth and investments linked to the
$10.27B
Binance ecosystem, was purportedly weighing the possibility of opening up to outside investors. The article also mentioned recent inquiries directed at the firm from the U.S. Securities and Exchange Commission (SEC).
The report indicated that YZi Labs acquired around $300 million from external sources in 2022. However, a portion of these funds were reportedly returned due to the fund’s already substantial capital reserves.
Ella Zhang, the current manager of YZi Labs, informed the Financial Times that, while the firm has seen consistent interest from external parties, it is not prepared at this time to transition to an external investment model.
YZi Labs is notable for its investments in a range of blockchain and Web3 companies, including Aptos
In related news, Zhao has petitioned a US bankruptcy court to dismiss a $1.8 billion claim made by the crypto exchange FTX. To find out more details, read the full article.