Zhao said in a social media post that the firm, valued at about $10 billion, remains a private vehicle for his wealth and has no plans to open to outside backers.
The FT report, citing YZi Labs chief executive Ella Zhang, suggested that the firm could evolve into a fund for third-party investors once its operations mature. Zhao countered that no demo, pitch deck, or fundraising roadmap exists for the firm, which remains a private entity.
He stressed that since its rebranding earlier this year, YZi Labs has not sought a single outside investor, nor has it held talks with regulators or financial figures such as former SEC Commissioner Paul Atkins, who was mentioned in the report.
Zhao characterized the article as filled with “made-up info and negative narratives,” and said he did not read the piece himself due to its subscription paywall but was alerted by commentary on social media.
He also accused the outlet of misrepresenting his legal record, noting that his U.S. plea deal related to shortcomings in anti-money laundering controls rather than theft or fraud.
YZi Labs was founded in January to manage Zhao’s personal fortune after he stepped down as chief executive of Binance in November 2023 as part of a $4.3 billion settlement with U.S. authorities.
The firm’s activities have drawn scrutiny, given Zhao’s high-profile regulatory battles and Binance’s global influence in crypto markets. While Zhao remains the largest shareholder in Binance, he is barred from holding an executive role at the exchange.
Meanwhile, YZi Labs has positioned itself as an independent investment house and has not been spun out of Binance, contrary to FT’s suggestion.
The dispute highlights both Zhao’s efforts to distance his personal ventures from Binance’s compliance legacy and the heightened media attention around one of the crypto industry’s most prominent figures.
