Former FTX Executives Launch Exchange in Post-Scandal Reckoning

A new cryptocurrency platform called Backpack has been developed by former FTX executives, including Can Sun, who served as FTX’s general counsel and was a key witness in Sam Bankman-Fried’s trial. This is a significant move in the cryptocurrency field. With a focus on security and transparency, the platform is ready to offer a new viewpoint on the cryptocurrency trading scene.

Can Sun, the brains of Backpack, wants to change the way people think about cryptocurrency platforms. The idea, run by startup Trek Labs in Dubai, promises a more transparent and safe trading system. The insights gained from FTX’s failure served as the impetus for this project. The fundamental idea behind Backpack is “self-custody” wallets that use multiparty computation to increase security.

Revolutionizing Trading with a Novel Approach

With its novel approach to trading, Backpack Exchange will need numerous partners to authorize transactions. Users now have more control and visibility over their assets thanks to this design. The exchange notably let customers to keep their funds in a private self-custody wallet that is unassailable. This creative solution tackles issues with centralized control, an important facet highlighted by the FTX event.

Relying on the experience of many former FTX workers, Backpack Exchange has set an ambitious valuation objective of more than $100 million for a 10% investment. Claire Zhang, Sun’s previous deputy, is on the roster in addition to Can Sun and Armani Ferrante. These people’s combined experience provides a strong basis for the new platform.

Backpack gains credibility from Can Sun’s openness about his involvement at FTX and collaboration with Dubai’s regulatory agencies. After the FTX incident, Sun signed a nonprosecution deal with US authorities. On October 19, 2022, he testified against his former boss, offering insights into the upheaval.

Leading the holding company for Backpack that is registered in the British Virgin Islands, Armani Ferrante provides a wealth of knowledge from his engagement with digital currency wallets and his tenure at FTX. Ferrante mentions the loss of cash after FTX’s collapse, despite having raised $20 million in an earlier investment round that was halted by the company in September 2022.

Backpack’s entry into the cryptocurrency space is a determined attempt by former FTX executives to rewrite industry norms, putting security and transparency first.