YZi Labs, the rebranded venture capital arm of the prominent cryptocurrency exchange Binance, has made headlines with its inaugural investment following the release of founder Changpeng ‘CZ’ Zhao from prison. As reported by Fortune on Wednesday, the company formerly known as Binance Labs has led a $16 million funding round into Sign, a startup focused on streamlining token distribution and enhancing credential verification on the blockchain.
In Zhao’s own words, “Proper distribution builds trust, and verification is an essential part of it. As more people move on-chain, this is a critical part of the foundational infrastructure.” This statement underscores YZi Labs’ commitment to fostering trustworthy technology in the ever-evolving cryptocurrency landscape.
The rebranding to YZi Labs marks a significant transformation for the company, shifting from its previous role as Binance’s venture capital arm to functioning as the family office of Zhao and Binance co-founder Yi He. This change comes with Zhao taking a more active role in the firm’s investment strategy.
Zhao’s return to the crypto world comes after a tumultuous four-month prison sentence, during which he faced allegations of violating the Bank Secrecy Act due to inadequate know-your-customer procedures at Binance. Additionally, he accepted a $50 million fine and stepped down as Binance’s CEO following his guilty plea.
As YZi Labs embarks on this new chapter, it signals a renewed commitment to innovation and investment in the blockchain sector. The firm has yet to respond to inquiries from CoinDesk regarding further moves in its investment strategy.
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