Emily Walker
Changpeng “CZ” Zhao, the founder and ex-CEO of Binance, the largest cryptocurrency exchange globally, is moving on from a challenging phase filled with legal issues to create a family office aimed at managing his vast fortune.
A recent Bloomberg article reveals that Zhao, who has recovered from a short stint in jail and currently holds a net worth of about $70 billion, is rebranding Binance’s previous venture capital division as YZi Labs.
New Beginnings: Launch of YZi Labs
YZi Labs will manage around $10 billion in crypto-related assets, reflecting a change in Zhao’s investment approach. The name honors both Zhao and his co-founder, Yi He, whose wealth will also be handled by this new venture.
Ella Zhang, instrumental in founding Binance Labs back in 2018 and returning after a brief hiatus, has taken the helm at YZi Labs. In a recent interview, she clarified that this firm focuses solely on family wealth management.
Zhao’s path has seen its share of challenges. He turned Binance into a top cryptocurrency exchange while avoiding conventional corporate norms, famously stating that the exchange lacks a global headquarters.
This unorthodox compliance approach attracted the attention of regulators, especially in the U.S. In 2023, Zhao and Binance faced allegations for not curbing illicit activities, resulting in a $50 million fine and a four-month custodial sentence for Zhao.
Following his release in September 2024, Zhao committed to more socially impactful investments rather than focusing solely on financial gains.
Diversifying Investments in AI and Biotech
YZi Labs signifies a strategic shift for Zhao, allowing him to remain influential in the cryptocurrency sector while branching out into other areas. The firm plans to invest in artificial intelligence and biotechnology, bringing in experts from these industries to aid this expansion.
This diversification represents a change from Binance Labs, which had previously invested in various cryptocurrency projects such as Sky Mavis, Aptos Labs, and Polygon.
Zhang highlighted that YZi Labs aims to make investments ranging from $500,000 to $50 million, showcasing a diverse investment strategy. With most of its tokens already sold in the presale phase, there is a strong interest in investment opportunities.
Zhao’s direct involvement in YZi Labs’ investment committee is expected to draw in founders and entrepreneurs seeking mentorship and funding.
This rebranding and strategic shift not only solidify Zhao’s role in the cryptocurrency arena but also enable YZi Labs to compete with other significant investment firms.
For comparison, a16z crypto manages over $7.6 billion, while Polychain Capital has around $6.7 billion under its management.
As of now, Binance Coin (BNB) is priced at $682, showing a slight drop of 1.2% in the last 24 hours.
Image sourced from DALL-E, with the chart provided by TradingView.com.