Changpeng Zhao, commonly known as “CZ,” is
restructuring his business operations months after his release from prison.
Zhao, whose net worth is estimated at $70 billion due to a strong
cryptocurrency rally, is converting the former venture capital arm of Binance
Holdings Ltd. into a family office, Bloomberg reported.
The unit, previously known as Binance Labs, will now operate
as YZi Labs. The organization manages approximately $10 billion in
crypto-related assets. It will also oversee the wealth of Binance co-founder Yi
He, with whom Zhao has three children. Ella Zhang, who established Binance Labs
in 2018 and left in 2020, has returned to lead YZi Labs.
Crypto Executive Restructures Investment Arm
Zhao, aged 47, built Binance into a major
cryptocurrency exchange. However, US authorities charged Binance and Zhao in
2023 with failing to prevent illegal activities on the platform. Zhao agreed to
pay a $50 million fine, resigned as CEO, and served a four-month prison
sentence. He was released in September 2024.
YZi Labs, named after Zhao and Yi He, is now positioned as a
family office investment vehicle. According to Zhang, the firm will operate
without a formal headquarters as its staff work remotely.
JUST IN: Binance Labs rebrands to YZi Labs, expanding investment focus to Web3, AI, and biotech with new leadership from former head Ella Zhang, and CZ to mentor founders directly! ? #Web3 #AI #Biotech #Investment #Leadership #Binance #CZ #Binance pic.twitter.com/MZYxINKpTx
— BNB Swap (@BNBSwap) January 23, 2025
Binance Founder Prioritizes Impact Investments
Zhao’s fortune, valued at $69.8 billion by the Bloomberg
Billionaires Index, primarily comes from his stake in Binance Holdings. Zhang
noted that there is no immediate plan for Zhao to inject additional funds into
YZi Labs.
Transitioning to a family office after legal challenges is
not unprecedented. Steve Cohen, for example, turned SAC Capital Advisors into a
family office after the firm pleaded guilty to insider trading in 2013.
Following his prison release, Zhao announced
plans to prioritize investments with significant impact. He also launched
Giggle Academy, a nonprofit online education platform. By this time, Binance
had begun separating from its venture capital arm.
Launched 6 hours ago ..Binance Labs rebranding to YZI Labs$YZILABSBGN8T9tATZ2adTqEviEf8U9YBNpo6u9Nn2HRp7ompumpBe careful and please DYOR pic.twitter.com/t6seBV1DbH
— CryptoatDaDipDoe (@CryptoAtDaDipdo) January 23, 2025
Last year, Binance
spun off its venture capital arm, Binance Labs. This move, led by CEO
Richard Teng, marked a significant shift in the company’s structure, as
reported by Finance Magnates.
Previously part of the broader Binance Group, Binance Labs
began operating as an independent entity, although it continued licensing the
Binance brand. Employees at Binance Labs worked under separate contracts,
similar to the structure at BNB Chain, which was also supported by Binance.
YZi Labs Expands Beyond Crypto Investments
YZi Labs plans to expand its focus beyond cryptocurrency. It
aims to invest in artificial intelligence and biotechnology while growing its
team from nine to as many as 20 members. Investment amounts will range from
$500,000 to $50 million, including investments in liquid tokens.
Before rebranding, Binance Labs invested in numerous
projects such as Sky Mavis, Polygon, and The Sandbox. Its assets, largely
comprising tokens, are valued at over $10 billion. Zhao will play a key role in YZi Labs’s investment decisions
as part of its investment committee. Zhang emphasized Zhao’s role in sourcing
opportunities, given his connections in the industry.
This article was written by Tareq Sikder at www.financemagnates.com.
