Former Binance CEO Changpeng Zhao, commonly known arsenic CZ, has recovered himself astatine the epicenter of a caller contention pursuing a caller study by the Financial Times regarding his Web3 and artificial quality (AI) venture, YZi Labs.
CZ Denies Financial Times Report
The report suggested that Zhao was readying to unfastened a important $10 cardinal portfolio to extracurricular investors, a assertion that has sparked a vigorous denial from the erstwhile enforcement of the world’s largest cryptocurrency exchange.
According to the Financial Times, Ella Zhang, caput of YZi Labs, acknowledged beardown involvement from imaginable investors, adjacent mentioning that US Securities and Exchange Commission (SEC) Chair Paul Atkins had requested a backstage objection of the fund’s capabilities.
The Financial Times study indicated that astir 70% of YZi Labs’ portfolio consists of integer assets, with much than 50 token proposals reviewed implicit the summer.
However, the erstwhile Binance enforcement took to societal media level X (formerly Twitter) to vehemently quality the Financial Times’ claims, labeling the study arsenic “complete mendacious news” filled with what helium described arsenic “fake, wrong, and made-up information.”
Zhao made respective circumstantial assertions successful his posts. He stated that YZi Labs is not presently raising an outer fund, nor is determination immoderate planned objection for investors.
CZ expressed disorder implicit the conception of a “demo” for a money and clarified that determination has ne'er been a transportation platform for YZi Labs, nor has the enactment pursued immoderate outer concern discussions since its rebranding.
YZi Labs Not Linked To Binance
In his response, CZ further stated that YZi Labs operates independently from cryptocurrency speech Binance and refuted claims that it was “spun out” of the speech aft his ineligible troubles with US authorities successful November 2023.
Addressing regulatory concerns, Zhao pointed retired that helium has lone been cited for a azygous usurpation related to the Bank Secrecy Act, which helium clarified progressive a nonaccomplishment to support an capable anti-money laundering program. He sated:
I plead to a azygous usurpation of BSA, nonaccomplishment to support an capable ANTI-money laundering program. Contrary to what FT characterized arsenic “money laundering” violations.
The erstwhile Binance CEO stressed that his ineligible concern should not beryllium conflated with accusations of money laundering, a favoritism helium feels is often misrepresented successful accepted media.
Zhao besides noted that the Financial Times had antecedently attempted to put a luncheon interrogation with him, promising affirmative coverage. After canceling the meeting, helium expressed his regret astir the situation, suggesting that the resulting nonfiction was not the communicative helium had hoped for.
At the clip of writing, Binance’s autochthonal token, Binance Coin (BNB), trades supra the $1,000 milestone, signaling gains of 15% during this month’s uptrend.
Featured representation from BBC, illustration from TradingView.com
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