Ex-FTX Execs Launch New Exchange
One year after the collapse of crypto exchange FTX, a group of former executives from the company has come together to create a new platform. The aim is to address the issues that led to FTX’s downfall.
According to a report from the Wall Street Journal, former FTX general counsel Can Sun, along with ex-employees Armani Ferrante and Claire Zhang, have introduced the Backpack Exchange. Zhang, who is Ferrante’s wife, and Sun’s ex-deputy are part of this new venture.
Backpack’s Upcoming Beta Launch
Sun founded Trek Labs, a startup based in Dubai that recently received an operational license from the Virtual Assets Regulatory Authority of the United Arab Emirates. Ferrante is the CEO of Trek’s holding company in the British Virgin Islands and also oversees Backpack, which designs and operates crypto wallets. Zhang is also part of the executive team.
The exchange will operate under the name Backpack Exchange and aims to offer a 10% stake to investors at a valuation of $100 million. Sun and Ferrante have brought on board other former FTX legal and compliance employees due to their expertise and experience. Zhang mentioned that she is working without pay to support the exchange and plans to transition out when Trek secures an investment round.
Backpack’s wallets use multiparty computation techniques that require approval from several parties for transactions. The platform plans to launch its beta version later this month, allowing customers to verify their holdings at any time. Sun and Ferrante stated that they would utilize lessons learned from FTX’s collapse to ensure user funds’ safety by operating Backpack Exchange with Backpack’s technology. Users will be able to hold their assets in self-custody crypto wallets that the exchange cannot access.
While it is uncertain how the crypto community will perceive Backpack due to its founders’ ties to FTX, Sun claimed he was unaware of SBF mishandling customers’ funds. He revealed that he resigned when SBF asked him to provide legal justifications for why the exchange’s funds were at Alameda Research following a meltdown that exposed a $9 billion hole. The former CEO was attempting to raise emergency cash from investors at that time.
Sun later cooperated with prosecutors and assisted with the investigation that led to SBF’s prosecution.
Hot Take: Ex-FTX Execs Venture into New Territory
A year after FTX’s collapse, former executives are making strides with their new platform, Backpack Exchange. With an emphasis on security and user control, they aim to learn from past mistakes while introducing innovative solutions within the cryptocurrency space.
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