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CZ's New Venture: From Crypto to AI, Biotech

Coin WorldWednesday, Jan 29, 2025 7:38 pm ET

1min read

Binance's Past and CZ's New Venture: A Tale of Two Paths

Changpeng Zhao (CZ), the once-influential figure in the crypto world, has returned with a new venture, YZi Labs, after stepping down as Binance's CEO and serving a four-month prison sentence in the U.S. for compliance failures. Unlike its predecessor, Binance Labs, YZi Labs is expanding its focus beyond the crypto world, venturing into artificial intelligence and biotechnology. The initiative will be led by Ella Zhang, a familiar face from Binance Labs' early days, and will reintroduce a 12-week, in-person residency program for startup founders. CZ will also be involved, offering mentorship to the next generation of entrepreneurs.

YZi Labs has already made its first major investment, leading a $16 million funding round for Sign, a platform aiming to improve on-chain credential verification and token distribution. The sign has developed TokenTable, a tool designed to address common issues with airdrops, such as token supply mismanagement and fraudulent claims from fake accounts. CZ has signaled that blockchain infrastructure and trust mechanisms remain core to his vision, stating in a Fortune report, "Proper distribution builds trust, and verification is an essential part of it."

Meanwhile, Binance continues to face regulatory battles. French authorities have launched a new probe into alleged fraud and money laundering, adding to the exchange's history of legal troubles. This investigation is the latest in a series of challenges for Binance amid growing scrutiny of cryptocurrency exchanges following the collapse of FTX in 2022. In 2023, U.S. authorities took legal action against major platforms like Binance and Coinbase, alleging violations of securities laws and other regulatory failures. While Coinbase pushed back against the SEC's claims, Binance settled with the DOJ in November 2023, agreeing to pay a historic $4.3 billion penalty. U.S. prosecutors accused Binance of operating with a "Wild West" approach, allegedly facilitating illicit activities and failing to report over 100,000 suspicious transactions tied to terrorist organizations and other criminal groups.

As Binance grapples with mounting legal challenges, CZ is pushing forward with YZi Labs, backing projects that signal a clear break from his past role as an exchange operator

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