A group including former FTX executives, among whom is an individual who provided crucial testimony against Sam Bankman-Fried, has joined forces to establish a new cryptocurrency exchange. The primary objective of this venture is to address the challenges that led to the downfall of their previous employer.
Under the leadership of former FTX lawyer Can Sun, the Dubai-based startup Trek Labs has secured a license to provide cryptocurrency services in the region, granted in late October. The services will be offered under the name Backpack Exchange.
About $9 billion in customer deposits disappeared from FTX, and Sam Bankman-Fried, the company’s head, is now a convicted fraudster who might spend the rest of his life behind bars.
According to a report published on November 11 by the Wall Street Journal, Sun is set to receive assistance from Armani Ferrante, a former employee of FTX, who currently holds the position of CEO at the holding company of Trek in the British Virgin Islands.
Ferrante is also responsible for overseeing the operations of Backpack, a digital wallet for cryptocurrencies that is seamlessly integrated within the Backpack Exchange platform.
Sun And Ferrante’s Vision For Payment Safeguarding At Backpack Exchange
Sun and Ferrante expressed their intention to apply the insights gained from FTX’s unsuccessful endeavor in safeguarding user payments. Backpack Exchange intends to utilize new technologies to enable users to store funds in their personal crypto wallets, ensuring that the exchange does not possess unilateral access to these wallets.
Additionally, Sun told the Journal that it will allow Backpack users to confirm their funds whenever they choose.
Ferrante’s wife, Sun’s former legal deputy, is also a member of Trek’s executive team. At a valuation above $100 million, the venture seeks to sell investors a 10% interest.
As of today, the market cap of cryptocurrencies reached $1.38 trillion. Chart: TradingView.com
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Author: Christian Encila
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