YZi Labs, the rebranded venture capital sector of the cryptocurrency exchange Binance, has executed its first investment since founder Changpeng “CZ” Zhao’s release from prison.

The firm led a $16 million funding round for Sign, a startup focused on simplifying token distribution and enhancing credential verification on-chain.

“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,” said Zhao in an electronic correspondence.

The transformation into YZi Labs signifies a shift from being Binance’s venture capital arm to a family office directed by Zhao and Binance co-founder Yi He, with Zhao actively involved in the investment process.

Zhao was released in September following a four-month prison term for contravening the Bank Secrecy Act due to insufficient know-your-customer protocols at Binance. Aside from this, he agreed to a $50 million fine and resigned as Binance CEO as part of his guilty plea.

YZi Labs hasn’t yet replied to requests for comments.

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