CZ, Ella Zhang Deny FT Claims on YZi Labs’ Fundraising Plans

Key Highlights:

• CZ and Ella Zhang rejected claims of YZi Labs raising external funds. 
• The firm has clarified its independence after its rebranding from Binance Labs.
• CZ addresses SEC compliance allegations and puts forward differences between violations and criminality. 

YZi Labs’ founder Changpeng Zhao and Managing Partner Ella Zhang each took to X and rejected the recent Financial Times articles as “completely false,” and denied all the claims about raising funds through outside investors. The statements clarified that the report also misrepresented how the company started.

Unified Leadership Response

CZ and Ella Zhang spoke to the crypto community and industry leaders through social media platform X and cleared the fact that the company is not planning for any outside investment since its rebranding. “There’s been no demo, no pitch, no outreach, nothing,” CZ said, which clearly showed his frustration with false information in mainstream reports.

Ella Zhang made another post and agreed with CZ saying, “Received many messages from community to ask me if I’m ok. Thank you all! We are good just frustrated: – wasted time and created no value to tech innovations neither founders nor the industry.” She also said that the FT interview was pitched as a friendly chat but ended up being used for different media agenda.

No Outside Capital, No Demo Days

The report by Financial Times suggested that YZi Labs was looking for investors funding and is running secret demo events. Both CZ and Ella Zhang denied this, and explained that startups in their portfolio raising money is not the same as YZi Labs itself asking investors. “Portfolios raise money ≠ Fund raise from LPs.” Ella stated on social media and set the record straight. 

Ella Zhang added that events like Easy Residency Demo Day at the NYSE were open to everyone, which included investors, builders, and regulators. “There was no private demo; startup pitches will be shared publicly,” she said.

Independence from Binance

The firm then also strongly denied FT’s claim that YZi Labs was “spun out” of Binance. CZ and Ella in their posts made it very clear that since its rebranding, YZi Labs has worked completely on its own. There have been no structural or operational links to Binance Labs other than its past history.

“YZi Labs rebranded from Binance Labs but has always operated independently. The phrase “spun out” is inaccurate,” Ella stated in the tweet, indicating the company’s independent mission and governance.

Addressing SEC Compliance

CZ also addressed the regulation claims and admitted that there was one BSA issue due to a weak anti-money laundering program but rejected the accusations of “money laundering” as misleading.

“Not following compliance rules is not the same as stealing or laundering money,” he said. CZ also added that there has been no communication with Chairman Paul Atkins, and countered another false claim.

The distinction shapes YZi Labs’ regulatory stance, especially as the SEC shifts under new leadership, dropping or rethinking several cases. YZi Labs’ cooperation fits into this broader trend.

Media Ethics and Misinformation

Both CZ and Ella Zhang voiced strong concerns about the ethics behind FT’s reporting and described attempts by journalists to secure friendly interviews under false pretences. CZ also informed in his tweet that FT even tried to lure him to lunch interview by promising positive coverage, but it turned out to be nothing but a trap. Ella Zhang added that they wasted time, created no value for innovation, and faced a media agenda that did not even give out the correct information.

Focused on Innovation

Despite the turbulence, YZi Labs’ leadership has reaffirmed that it is committed to supporting blockchain innovation globally. CZ stated that YZi Labs is focused on helping founders succeed and avoid distraction from misleading media. Ella Zhang, at the end of her post, added that their small team will keep investing time and energy into ideas that will have a long-lasting impact and help founders build greatness.

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