Binance's Past Haunts CZ's New Venture Amidst French Probe

Binance's past continues to haunt the crypto exchange as it faces a new probe in France, while its founder, Changpeng "CZ" Zhao, is forging a new path with YZi Labs, his rebranded venture capital arm.

YZi Labs, now representing the family office of Zhao and Binance co-founder Yi He, has made its first significant move since Zhao's release from prison. The firm led a $16 million funding round for Sign, a blockchain startup focused on improving token distribution and on-chain credential verification. This investment marks a shift in focus for the firm, which is now prioritizing foundational blockchain infrastructure under Zhao's more active leadership.

Sign, the recipient of YZi Labs' first investment, has seen rapid growth, with revenue surging from $1.7 million in 2023 to $15 million in 2024. The platform aims to use its new funding to expand globally and assist governments in embracing blockchain technology. Zhao emphasized the importance of proper distribution and verification in building trust within the blockchain industry.

Meanwhile, Binance continues to grapple with legal troubles. French authorities have launched a new probe into alleged fraud and money laundering, adding to the exchange's history of regulatory battles. Despite CZ's departure from Binance, the exchange's past may continue to impact his future endeavors with YZi Labs.