Former Binance CEO CZ Forms Family Office To Navigate Wealth Of $70 Billion
Changpeng “CZ” Zhao, the founder and former CEO of Binance, the world’s largest cryptocurrency exchange, is embarking on a new chapter in his career. After facing legal challenges and a brief period of incarceration, Zhao is now establishing a family office to manage his substantial wealth, which is estimated to be around $70 billion.
According to a recent report by Bloomberg, Zhao is rebranding the former venture capital arm of Binance Holdings Ltd. as YZi Labs. This new entity will now oversee approximately $10 billion in crypto-related assets, marking a shift in Zhao’s investment strategy. The name “YZi Labs” is a tribute to both Zhao and his co-founder, Yi He, who will also have her wealth managed by this newly formed family office.
Ella Zhang, who played a key role in founding Binance Labs in 2018 and later left, has returned to lead YZi Labs. In a recent interview, Zhang emphasized that the firm is now solely focused on being a family office investment vehicle, indicating a shift towards personal and family wealth management.
Despite his success in building Binance into a leading cryptocurrency exchange, Zhao has faced challenges due to the platform’s unconventional approach to compliance. In 2023, both Zhao and Binance were charged for failing to prevent illicit activities on the platform, resulting in a $50 million fine and a four-month custodial sentence for Zhao. However, after his release in September 2024, Zhao announced a renewed commitment to investments that prioritize societal impact over financial returns.
YZi Labs represents a strategic pivot for Zhao, allowing him to maintain influence in the crypto realm while also diversifying into other sectors such as artificial intelligence and biotechnology. The firm plans to expand its investment scope and has already attracted specialists in these fields to support its ambitions.
This diversification marks a departure from Binance Labs, which previously focused on investing in various crypto projects. YZi Labs intends to write checks ranging from $500,000 to $50 million, showcasing a flexible investment approach that has already garnered significant interest, with over 91% of its tokens sold in its presale.
With Zhao actively involved in the investment committee of YZi Labs, the firm is expected to attract founders and entrepreneurs seeking guidance and capital. The rebranding and strategic pivot not only solidify Zhao’s position in the cryptocurrency market but also position YZi Labs as a potential competitor to other major investment firms.
For instance, a16z crypto manages over $7.6 billion in committed capital, while Polychain Capital oversees around $6.7 billion. At the time of writing, Binance Coin (BNB) is trading at $682, recording slight losses of 1.2% in the 24-hour timeframe.
In conclusion, Changpeng Zhao’s establishment of YZi Labs as a family office marks a significant milestone in his career, showcasing his resilience and determination to navigate the complexities of the cryptocurrency market while also venturing into new investment opportunities.