A striking claim has emerged regarding FTX, one of the most talked-about agenda items of recent times. Some former FTX executives have come together in Dubai to assist in the establishment of a new crypto exchange that focuses on doing what FTX couldn’t do after its bankruptcy decision. The aim of the former executives is to secure FTX customers’ funds.
Can Sun, a former lawyer for FTX, started working at Trek Labs, a Dubai-based venture that obtained a license to offer crypto services in the region, at the end of October. Trek Labs will provide these services to users under the name Backpack Exchange.
According to a report published by the Wall Street Journal on November 11, Sun is receiving support from Armani Ferrante, a former FTX employee who currently serves as the CEO of the holding company located in the British Virgin Islands that Trek Labs is a part of. Ferrante also offers Backpack, a Web3 wallet integrated into Backpack Exchange, to users.
Claire Zhang, Sun’s former legal assistant at FTX and also Ferrante’s wife, is attracting attention by being part of the Trek Labs management team. However, according to the WSJ report, Zhang is considering leaving the company as she has been working without pay to assist the exchange’s financial resources when Trek Labs completes an investment round.
Sun and Ferrante stated that they want to work on the lessons they have learned from the failure to protect customer funds at FTX. Backpack’s technology offers a self-custody solution that integrates multi-party computation (MPC) technique to ensure the security of funds.
Sun stated in an interview with WSJ that Backpack will also allow customers to verify their funds whenever they want:
“In a post-FTX world, you need trust and transparency to create a real alternative for other players.”
The company stated that Backpack Exchange is currently in the testing phase and will have a broader launch at the end of this month. Sun testified as a witness in the fraud case against Bankman-Fried and revealed that the former FTX CEO had requested a legal justification for why FTX funds were with Alameda Research. Bankman-Fried was convicted on all seven charges related to the fraud after the court process.