Ex-Binance CEO CZ Fires Back at Financial Times Over 'Negative Narrative' on YZhi Labs
Changpeng Zhao (CZ), the former CEO of Binance, has publicly denounced a recent Financial Times (FT) report concerning his Web3 and artificial intelligence venture, YZhi Labs. CZ labeled the article a "negative narrative" filled with "fake, wrong, and made-up information," setting the record straight on his post-Binance endeavors.
Debunking FT's Claims: No $10 Billion Fund, No Investor Pitches
The Financial Times report had alleged that Zhao was planning to open a substantial $10 billion portfolio at YZhi Labs to outside investors, and cited Ella Zhang, head of YZhi Labs, as having acknowledged strong investor interest, including a private demonstration request from SEC Chair Paul Atkins. Furthermore, the FT claimed that roughly 70% of YZhi Labs' portfolio consisted of digital assets, with over 50 token proposals reviewed. CZ categorically denied these assertions on social media platform X, stating emphatically that YZhi Labs is neither currently raising an external fund nor has it scheduled any investor demonstrations.
Clarifying Independence and Legal Standing
CZ also addressed the underlying insinuation that YZhi Labs was a direct consequence or "spun out" of Binance following his legal issues in November 2023. He clarified that YZhi Labs operates entirely independently of Binance and has not pursued any external investment discussions since its rebranding. Emphasizing the nature of his legal troubles, CZ pointed out that his conviction was for a single violation related to the Bank Secrecy Act — specifically, a failure to maintain an adequate anti-money laundering program — contrasting it sharply with the FT's characterization of "money laundering violations." He also noted a prior attempt by the Financial Times to arrange an interview, promising positive coverage, the cancellation of which he now regrets given the subsequent article's negative tone. Amidst this controversy, Binance's native token, BNB, has shown resilience, trading above the $1,000 mark and recording a 15% increase in value over the current month's uptrend.
