- Ex-FTX execs team up to build new crypto exchange 12 months after FTX collapse
- The cryptocurrency exchange offers a self-custody solution that integrates a multiparty computation technique to secure funds.
Several former FTX executives have joined forces to help launch a new cryptocurrency exchange in Dubai that will focus on what FTX failed to do, which is safeguarding customer assets.
Ex-FTX lawyer Can Sun is leading the way with Trek Labs, a Dubai-based startup that received a license to offer cryptocurrency services in the region in late October. Backpack Exchange is the name under which Trek Labs will offer those services.
According to the Wall Street Journal, Sun will receive support from ex-FTX employee Armani Ferrante, who works as CEO of Trek’s holding company in the British Virgin Islands. Ferrante also runs Backpack, a cryptocurrency wallet which is integrated in Backpack Exchange.
Claire Zhang, Sun’s former legal deputy at FTX and Ferrante’s wife, is also on Trek’s executive team. However, if Trek gets an investment round, Zhang intends to leave the company because she has been working without pay to “help bootstrap the exchange,” according to the WSJ.
Sun and Ferrante stated repeatedly that they wished to apply the lessons gained from FTX’s failure to safeguard consumer payments. Backpack’s technology provides a self-custody solution that incorporates a multiparty computation (MPC) technique to assure the security of payments. Before monies are transferred, MPC normally requires many parties to approve the transaction.
With things heating up, please be aware of phishing attacks on the rise.
Backpack will NEVER ask you for your private keys.
The only valid website URLs are in our bio. Assume anything else is a scam.
Stay safe.
— Backpack 🎒 (@xNFT_Backpack) November 11, 2023
Sun told the WSJ that it will also allow Backpack clients to verify funds whenever they want.
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“In a post-FTX world, you need trust and transparency to create a true alternative to the other players.”
Backpack Exchange is now in beta, with a larger rollout planned for later this month, according to the company.
Sun testified at Bankman-Fried’s recent fraud trial, revealing that the former FTX CEO approached him seeking legal justification for why FTX’s funds were at Alameda Research. Bankman-Fried was found guilty on all seven counts of fraud.
Sun stated that he resigned as FTX’s general counsel the day after Bankman-Fried informed him of the diversion of customer funds.
“This went against everything that I stood for and was represented to me by Sam.”
Bankman-Fried’s old empire commingled billions of dollars in customer funds for investing purposes through Alameda Research. A total of $9 billion in consumer cash has gone stolen.
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