Zhao Converts Binance Labs into $10 Billion Family Office YZi Labs

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.

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.

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.