CZ news: Binance founder slams ‘negative narratives’ – What’s going on?

Key Takeaways 

Why did CZ dismiss the FT report?

CZ clarified that FT’s claims about YZi Labs and his past charges were incorrect. 

Did the FUD impact BNB?

No, BNB market sentiment remained positive despite the development. 

Binance [BNB] exchange founder Changpeng Zhao (CZ) has slammed claims by the Financial Times (FT) that his fund, YZi Labs, is seeking external investors. 

CZ called the FT’s report “fake” and accused the outlet of pushing “negative narratives.” He said reporters promised positive coverage but attempted to frame YZi Labs differently.

He clarified that Yzi Labs was not “spun out” of Binance, and he wasn’t charged for “stealing user funds” as the FT report alleged. 

“I plead to a single violation of BSA, failure to maintain an adequate anti-money laundering program. Contrary to what FT characterized as “money laundering” violations. Failure to police is not the same as stealing.”

‘We are frustrated’

For her part, Ella Zhang, Head of YZi Labs, who met with FT, noted that the interview was a “trap” for another agenda. 

“We are good, just frustrated…per the journalist request to set up for an “intro call” hoping to know a new friend interested in crypto, but it’s a trap for other agenda.”

She added that some of their portfolio companies may be raising external money, but that doesn’t mean the fund (YZi Labs) is also doing the same. 

“Any VC’s portfolio companies will raise from multiple investors; YZi Labs is simply one of the minority shareholders.”

YZi Labs’ focus

YZi Labs is reportedly an independent investment firm led by CZ and Ella Zhang, and its focus spans crypto, AI, and biotech. In crypto, the fund has recently backed BNB crypto treasury firms, like Hash Global and B Strategy.

That said, it’s not the first time CZ has dealt with FUD from traditional media.

In May, he dismissed claims by the Wall Street Journal (WSJ) that he helped the Trump-backed World Liberty Financial expansion. He termed the WSJ report ‘misleading’ and designed to serve an anti-crypto agenda. 

After serving the DoJ sentence, CZ shifted his focus to education, but later became active in investment activities at YZi Labs after it rebranded from Binance Labs earlier this year.

The $10 billion investment firm now supports over 250 start-ups and Web3 companies. 

BNB sentiment holds firm

Despite the FUD, BNB’s Weighted Sentiment stayed positive. According to Santiment, the token reclaimed the $1,000 mark as of press time.