Changpeng “CZ” Zhao’s $10 billion investment vehicle, YZi Labs, is considering letting external investors in for the first time, signaling a potential shift in one of crypto’s largest private funds.
YZi Labs currently manages Zhao’s personal wealth alongside capital from a small circle of early Binance executives, including co-founder Yi He. The fund briefly accepted about $300 million in outside commitments in 2022 but returned much of it, saying the cash already on hand was more than sufficient.
“There’s always a lot of external investors interested,” Ella Zhang, the firm’s chief executive, told the Financial Times. “We will eventually consider turning it into an external-facing fund. We just think it’s not there yet.”
The firm’s reach spans more than 230 crypto and Web3 projects, according to Dealroom data. Holdings include layer-1 networks such as Aptos and Polygon, DeFi platforms like 1inch, gaming studio Sky Mavis, and infrastructure players LayerZero, Mysten Labs and CertiK.
Zhang added that the U.S. Securities and Exchange Commission recently requested a private presentation of YZi-backed companies after missing the fund’s demo day at the New York Stock Exchange, according to Cointelegraph.
She described current SEC leadership as “very open-minded,” reflecting a friendlier climate toward digital assets under the Trump administration. Paul Atkins, who became SEC chair in April 2025, is said to be closely monitoring the sector.
It is worth noting that Zhao stepped down as Binance chief last year after pleading guilty to charges tied to inadequate anti-money-laundering controls and served a four-month prison sentence. He remains Binance’s largest shareholder and is seeking a presidential pardon.
Interest in crypto-focused venture capital is accelerating. Galaxy Digital, for example, closed its first externally backed fund in June with $175 million, surpassing its initial $150 million goal. That momentum is adding pressure on large private players like YZi Labs to consider outside capital.
