Former FTX Executives Launch New Crypto Exchange in Dubai
Former FTX executives have joined forces to establish a new cryptocurrency exchange in Dubai, focusing on securing customer funds, which FTX failed to do. Can Sun, the ex-FTX lawyer, is leading Trek Labs, a Dubai-based startup that obtained a license to offer cryptocurrency services in the region in late October. The services will be provided under the name Backpack Exchange.
Sun is receiving support from Armani Ferrante, a former FTX employee who is the CEO of Trek’s holding company in the British Virgin Islands. Ferrante also manages Backpack, a cryptocurrency wallet integrated into Backpack Exchange. Claire Zhang, Sun’s former legal deputy at FTX and Ferrante’s wife, is also part of Trek’s executive team.
Backpack Exchange’s technology offers a self-custody solution using multiparty computation (MPC) to ensure fund security. This technique involves several parties approving transactions before funds are moved. Additionally, customers can verify their funds at any time.
Hot Take: Building Trust and Transparency
In a post-FTX world, trust and transparency are essential to create a true alternative to other players in the industry. Backpack Exchange is currently in beta and will have a wider launch later this month.
Sun was involved as a witness at Bankman-Fried’s recent fraud trial, where he revealed that the former FTX CEO sought legal justification for FTX’s funds being at Alameda Research. After learning about the use of customer money, Sun quit as FTX’s general counsel, expressing that it went against his principles and what was represented to him by Sam Bankman-Fried.
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