Changpeng Zhao Shuts Down Claims of YZi Labs Seeking Outside Funding

The Financial Times had reported that the $10 billion fund was moving toward welcoming outside capital. However, Zhao stated in a post on X on September 23 that the article’s claims are "completely false news".

He noted that YZi Labs has not tried to raise money, created any fundraising materials, or organized any demonstrations for government agencies.

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The Financial Times had said that the fund, which manages Zhao’s private wealth and investments linked to Binance’s $17.27B team, was considering opening its doors to external investors. The article also stated that the US Securities and Exchange Commission (SEC) had recently shown interest in the firm.

According to the report, YZi Labs received around $300 million in outside funding in 2022. However, some of that money was later returned because the fund already had more than enough capital to manage.

Ella Zhang, the current head of YZi Labs, told the Financial Times that, while there has been frequent interest from third parties, the firm is not yet ready to shift to an external investment model.

YZi Labs is known for backing various blockchain and Web3-related companies. Its investment list includes Aptos APT $3.59 Labs, 1inch Network 1INCH $0.1921 , Polygon MATIC $0.1995 , Sky Mavis, LayerZero, Mysten Labs, and CertiK.

Recently, Zhao asked a US bankruptcy court to reject a $1.8 billion lawsuit brought by the crypto exchange FTX. Why? Read the full story.