Changpeng "CZ" Zhao, founder of Binance, has addressed what he claims to be misrepresentations by the Financial Times regarding YZiLabs' status and his legal case. Zhao emphasized the firm's independence and clarified that his plea was related to program compliance. His statement was made on the social media platform X.
"Complete false news from FT, with fake/wrong/made-up info and negative narratives," said Zhao. "YZiLabs operates independently. Contrary to what FT said, YZiLabs was NOT “spun out” of Binance. Failure to police is not the same as stealing."
The Financial Times reported on September 23, 2025, that YZiLabs—formerly known as Binance Labs and managing a $10 billion portfolio linked to Zhao and early Binance executives—might eventually open to outside investors. This report cited remarks from YZiLabs head Ella Zhang. On September 24, Zhao denied this claim on X, describing it as "false news." Zhang also said that the firm was not raising an external fund. According to CoinDesk, these denials directly contradicted the Financial Times' original story.
On January 23, 2025, Binance announced that Binance Labs had rebranded to YZiLabs to signify its independence and expansion beyond cryptocurrency into artificial intelligence (AI) and biotechnology. Ella Zhang returned as head of the firm. The announcement highlighted YZiLabs’ operational separation from Binance’s core exchange activities, positioning it as distinct in governance and focus. According to Binance’s official release, the rebrand marked a governance reset.
In November 2023, Changpeng Zhao pleaded guilty in U.S. federal court to one Bank Secrecy Act violation for failing to maintain an effective anti-money laundering program at Binance. He stepped down as CEO on the same day. The Department of Justice (DOJ) emphasized compliance failures rather than fraud or customer asset misuse. Zhao was sentenced in April 2024 to four months in prison and fined $50 million as part of a broader $4.3 billion settlement with Binance.
According to Forbes, Changpeng Zhao is recognized as a visionary entrepreneur who founded Binance in 2017 and quickly developed it into the world’s largest cryptocurrency exchange by trading volume. He is acknowledged for his leadership in advancing blockchain technology and promoting financial inclusion globally.
Binance itself was founded in 2017 and is known for being the largest cryptocurrency exchange by trading volume worldwide. It offers spot and derivatives trading, non-fungible tokens (NFTs), and financial services but operates without a fixed headquarters. Following Zhao's resignation in 2023, Richard Teng assumed the role of CEO. According to Reuters, Binance's corporate structure centers around Binance.com and a Cayman Islands holding company.