CZ takes 'active role in investment activities' in venture firm YZi Labs, rebranded from Binance Labs

Binance’s founder and former CEO, Changpeng “CZ” Zhao, is set to take an “active role” in investment activities at YZi Labs — now rebranded from Binance Labs — after serving four months in U.S. prison on money laundering charges. 

The move is part of an overall shift in focus for YZi Labs, expanding its investment interests beyond crypto to the AI and biotech sectors, according to an announcement on Tuesday. A play on the Binance co-founders' names, YZi Labs is now "purely a family office investment vehicle," Zhang said in an interview with Bloomberg.

“It is fitting to step away from the Binance brand name as it expands its investment focus, moving beyond crypto and blockchain to include Artificial Intelligence (AI) and biotechnology (biotech), while remaining steadfastly dedicated to advancing Web3 innovation,” the company wrote, noting that for years Binance Labs "operated independently while leveraging on the Binance brand name."

It is unclear what Zhao's official title will be at the rebranded organization. On the organization's site, he is named as an "intern."

Former head of Binance Labs, Ella Zhang, will also return to the firm in the same role as head of YZi Labs. Zhang and Zhao co-founded Binance Labs in 2018. 

Binance Labs was among the most influential venture firms in crypto, having invested in CertiK, Dune Analytics, Elrond, Injective, Nym and Polygon, among others. As part of his role, CZ will offer investment advice and guidance to startups. 

In late 2023, Binance pled guilty to violating the Bank Secrecy Act and failing to register as a money-transmitting business. Zhao, a Canadian national, also pled guilty to failing to maintain effective anti-money laundering practices. The U.S. Department of Justice accused the firm of allowing money to flow to countries including Russia, Iran and Cuba.

The firm paid over $4 billion to resolve the Justice Department’s investigation. Zhao agreed to resign from Binance and pay a $50 million fine as part of a guilty plea to U.S. federal charges.

A number of crypto company founders, including Coinbase CEO, have invested in the biotech industry.