Former FTX and Alameda Research Employees Launch Backpack Crypto Exchange with $17 Million Funding
A group of former employees from FTX and Alameda Research have raised $17 million to establish a new cryptocurrency exchange called Backpack. This comes after the downfall of their previous employer, Sam Bankman-Fried’s cryptocurrency conglomerate. Backpack is now valued at $120 million following a successful Series A investment round.
Key Points:
- Backpack, a new cryptocurrency exchange, has secured $17 million in funding.
- The company was founded by former workers of FTX and Alameda Research.
- Backpack is now valued at $120 million after completing a Series A investment round.
- The company offers an NFT collection and a cryptocurrency wallet in addition to its exchange services.
- Placeholder VC led the investment round, with participation from other venture capital firms.
Backpack: Crypto’s Future After FTX Downfall?
Last year, Armani Ferrante and Can Sun, former employees of FTX and Alameda Research, co-founded Backpack. Ferrante, who previously worked at Alameda, now serves as the CEO of Backpack. Sun, who was the general counsel for FTX, provided testimony against Sam Bankman-Fried in a fraudulent scheme case. Despite their previous associations, Ferrante, Sun, and their team have successfully built Backpack into a global platform with over 420,000 verified users. The company has also obtained a virtual asset service provider license in Dubai.
Backpack operates a cryptocurrency exchange that recently became accessible in the United States. The company also offers the Mad Lads NFT collection and a digital wallet platform. According to Ferrante, starting a bitcoin exchange today is more challenging than it was in the past, particularly after the FTX catastrophe. However, Backpack is one of several new ventures that have emerged to fill the void left by FTX’s downfall.
Update on Sam Bankman-Fried Case
In a separate development, legal counsels for Sam Bankman-Fried, the founder of FTX, argued that their client should serve a maximum prison sentence of six and a half years instead of the hundred years suggested by probation officials. They described Bankman-Fried as a “misunderstood first-offender.” Bankman-Fried has been incarcerated since last year and has been promoting Solana (SOL) investments while in prison. He has requested a reduced sentence due to his autism and expressed remorse for the $8 billion scam. Federal prosecutors will release their suggested sentence length on March 15, with sentencing scheduled for March 28.
🔥 Hot Take: Backpack Aims to Fill the Void Left by FTX’s Demise
A group of former employees from FTX and Alameda Research have raised $17 million to establish Backpack, a new cryptocurrency exchange. The company aims to bridge the gap created by the downfall of Sam Bankman-Fried’s cryptocurrency conglomerate. With its successful funding round and offerings such as an NFT collection and cryptocurrency wallet, Backpack is positioning itself as a promising player in the crypto industry. Meanwhile, Sam Bankman-Fried’s legal case continues to unfold as his defense team argues for a reduced prison sentence.
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