Changpeng “CZ” Zhao, who you may know as the mastermind behind Binance—the largest crypto exchange globally—has embarked on a fresh chapter in his life. After navigating a rocky patch filled with legal issues, he’s now setting up a family office to handle his vast wealth.
Bloomberg recently highlighted this shift, noting Zhao’s impressive recovery from a short incarceration, and now he stands with an estimated net worth of around $70 billion. In this new venture, he’s giving a makeover to Binance Holdings Ltd.’s previous venture capital arm, renaming it YZi Labs.
Binance Co-Founders Collaborate: Introducing YZi Labs
This new entity, YZi Labs, will take charge of about $10 billion worth of crypto assets. It signifies a new direction in Zhao’s investment strategies. The name honors both him and his co-founder, Yi He, as her wealth will also be managed through this setup.
Returning to the helm of this venture is Ella Zhang, a significant figure in the founding of Binance Labs back in 2018, who had taken a leave in 2020. She made it clear in a conversation that YZi Labs is evolving into “purely a family office investment vehicle,” pointing towards a concentrated effort on managing personal and family fortunes.
Zhao’s journey to where he is today hasn’t been straightforward. As he built Binance to its leading position, he often sidestepped typical corporate frameworks, once famously declaring that the platform didn’t have a global headquarters. This unique approach eventually drew the attention of regulators, especially in the U.S. In 2023, both Zhao and Binance faced allegations related to the platform’s role in illegal activities, culminating in a $50 million penalty and a four-month jail term for Zhao.
Following his release in September 2024, Zhao has turned over a new leaf, committing himself to investments that value societal impact just as much as financial gain.
Venturing into AI and Biotech Investments
YZi Labs represents a significant strategic pivot for Zhao. It allows him to sustain his presence in the crypto sector while branching out into new arenas. The plan is to explore investments in artificial intelligence and biotechnology, and they are actively recruiting experts in these areas to bolster this new direction.
This move is a clear departure from the focus of Binance Labs, which previously invested in a wide array of crypto ventures, including notable ones like Sky Mavis, Aptos Labs, and Polygon. Zhang shared that YZi Labs is prepared to write checks in the range of $500,000 to $50 million, signaling a flexible investment strategy. The strong demand for investment opportunities in this sphere is underscored by the fact that over 91% of its tokens were already sold during the presale phase.
Zhao’s continuous engagement in YZi Labs’ investment committee is expected to attract innovators and startup founders looking for both funding and mentorship.
By rebranding and redirecting their efforts, Zhao is not just preserving his significant presence in the cryptocurrency world; he’s also positioning YZi Labs to compete with foremost investment giants. Consider, for example, that a16z crypto boasted of managing over $7.6 billion, and Polychain Capital has about $6.7 billion under their watch.
Currently, Binance Coin (BNB) is being traded at $682, which is a slight dip of 1.2% within the last day.
Featured image from DALL-E, chart sourced from TradingView.com.
