Ex-FTX Executives to Launch Trek Labs: A Crypto Exchange Prioritizing Asset Security
Summary:
Former FTX executives, led by Can Sun and supported by Armani Ferrante, have joined forces to establish a Dubai-based cryptocurrency exchange called Trek Labs, which will operate under the name Backpack Exchange. Learning from FTX's shortfalls in securing customer funds, Trek Labs plans to incorporate a self-custody solution that integrates a multiparty computation technique along with allowing clients to verify their funds anytime. The exchange, presently in a beta-testing phase, is slated for a wider launch later this month.
Ex-top brass from FTX have joined forces to establish a fresh cryptocurrency exchange in Dubai, aiming to provide security measures that their previous platform couldn't — safeguarding customer assets. The project, Trek Labs, spearheaded by ex-FTX counsel Can Sun, secured its license to operate cryptocurrency services in the region towards the end of October. Operating under the banner Backpack Exchange, this venture offers its service with crucial support from a former FTX colleague, Armani Ferrante, who acts as the CEO of Trek's parent company based in the British Virgin Islands, referenced by a Wall Street Journal report dated November 11. Additionally, he manages Backpack, a cryptocurrency wallet system that's integrated with Backpack Exchange.
Claire Zhang, who once served as Sun's legal assistant at FTX and happens to be Ferrante's spouse, is also among the executives at Trek. Nevertheless, Zhang intends to step back from the business after Trek secures an investment round, mainly because she has been offering her services without receiving any compensation to assist in setting up the exchange, according to WSJ.
Drawing from FTX's experience as a case of failure to ensure the safety of client funds, Sun and Ferrante are eager to apply this crucial lesson to their enterprise. The technology powering Backpack Exchange proposes a self-management solution which leverages a multiparty computation technique that calls for multiple approvals before any funds can be transferred.
Backpack Exchange also endeavors to provide its customers with the ability to cross-check their funds anytime, a feature that Sun explained is essential in today's post-FTX era where establishing trust and maintaining transparency are crucial to genuinely rival existing players in the market.
The newly-emerging platform Backpack Exchange is currently in its beta testing phase with plans for a broader roll-out later this month. Sun's recent testimony at the fraud trial of Bankman-Fried, former FTX CEO, brought to light an instance when CEO sought legal validation from him regarding the transfer of FTX's funds to Alameda Research. Following the testimonies and evidence, Bankman-Fried was found guilty on all seven fraudulent charges.
Sun shared that he resigned from his role as FTX's chief legal officer the day after Bankman-Fried informed him about the controversial use of customer assets which he felt strongly contradicted his ethical stand, as well as the principles that Sam (Bankman-Fried) had projected to him.
Bankman-Fried's previous business had involved pooling vast customer funds amounting to billions of dollars through Alameda Research for the sake of investment. Ultimately, customer funds nearing a total of $9 billion disappeared.
Published At
11/12/2023 3:20:55 AM
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