- CZ denied claims that YZi Labs plans to raise outside capital, saying no talks or requests have taken place.
- Conflicting reports stemmed from Ella Zhang’s comments to the FT, which Zhao says were misrepresented.
- YZi Labs continues to operate independently, backing major crypto projects while building expertise in AI and biotech.
Binance co-founder Changpeng “CZ” Zhao has shot down reports that YZi Labs, the rebranded venture arm he co-founded, is opening the door to outside capital. In a Tuesday post on X, Zhao wrote bluntly: “YZiLabs is not raising [an] external fund… since rebranding, [it] has not sought a single external investor. No requests, no discussions.” His response followed a Financial Times article quoting YZi Labs head Ella Zhang suggesting the firm may eventually convert into a $10 billion externally managed fund.
Confusion Around Ella Zhang’s Remarks
The Financial Times cited Zhang as saying external investors were interested and that YZi Labs could one day evolve into an outward-facing fund, but Zhao dismissed the report. He stressed that YZi Labs has not been “spun out” of Binance and operates independently. Zhang and Zhao originally co-founded Binance Labs in 2018, with the entity rebranded to YZi Labs in January 2025. The timing of the rebrand came just after Zhao completed a four-month prison term for a Bank Secrecy Act violation.
Independence and Long-Term Vision
While Zhang has previously suggested YZi Labs operates separately from Binance, reports have often blurred the firm’s role. Zhao underscored on Tuesday that YZi Labs is not a family office and has no current plans to raise capital externally. He noted the venture group’s focus is on long-term investments across crypto, AI, and biotech—fields where it is still building deeper expertise. “Failure to police is not the same as stealing,” Zhao added, taking a jab at traditional media’s portrayal of his past legal case.
Track Record and Market Standing
Despite the current controversy, YZi Labs remains one of the most influential VCs in crypto. It has backed top projects like Aptos Labs, Polygon, LayerZero, Dune Analytics, and Mysten Labs. Although Binance Labs raised a $500 million fund with outside partners in 2022, Zhang said most undeployed capital was returned, with the majority coming from Binance itself. For now, Zhao insists YZi Labs is moving at its own pace: “The demand is very high… [but] we’re not in a rush to exit.”
