CZ's First Post-Prison Investment: YZi Labs Backs Blockchain Startup Sign

YZi Labs, the rebranded venture capital arm of Binance Lab, has made its first significant investment since the release of its founder, Changpeng "CZ" Zhao, 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 move signals a shift in focus for YZi Labs, which now represents the family office of Zhao and Binance co-founder Yi He, with Zhao taking a more active role in crypto investments.

Sign aims to simplify the token distribution process while verifying credentials on-chain, aiming to provide a more trustworthy infrastructure as blockchain adoption grows. The startup has seen rapid growth, with revenue surging from $1.7 million in 2023 to $15 million in 2024 following its integration with the TON blockchain. The platform plans to use its new funding to expand globally and assist governments in embracing blockchain technology.

Zhao was released in September after serving four months for violating the Bank Secrecy Act. Despite his guilty plea and $50 million fine, he has not slowed his ambitions. The rebranding from Binance Labs to YZi Labs marks a significant change, with the firm now serving as the family office of Zhao and Yi He. This move aligns with Zhao's vision of taking a hands-on approach to shaping the future of blockchain and cryptocurrency, focusing more directly on ventures that interest him and his co-founder.

Even though Zhao has regained his freedom, his legal troubles are not over. In a fresh lawsuit, investors have accused Binance of selling unregistered tokens that later lost value. The lawsuit argues that U.S. laws apply to Binance since American investors used its platform. Even though Binance claims it operates outside the U.S., courts have ruled that its activities fall under U.S. jurisdiction.