In the wake of Sam Bankman-Fried’s conviction on fraud-related charges, former FTX executives, including Can Sun and Armani Ferrante, are forging a new path with Backpack Exchange, a Dubai-based cryptocurrency exchange.
This venture, born from the lessons of FTX’s downfall, strongly emphasizes securing customer funds. Sun says, “In a post-FTX world, you need trust and transparency to create a true alternative to the other players.”
Backpack Exchange, operating under Trek Labs and leveraging technology from Ferrante’s digital wallet company, Backpack, emphasizes user-centric security measures. It emphasizes a groundbreaking self-custody solution that integrates a multiparty computation technique for enhanced fund security. This feature allows customers to verify their funds at any time, addressing the trust deficit left by FTX’s collapse.
Sun’s departure from FTX as the general counsel was a direct response to the ethical dilemma posed by the misuse of customer funds, as he stated, “This went against everything that I stood for and was represented to me by Sam.”
As Bankman-Fried faces the consequences of his actions, with billions in customer funds lost, Backpack Exchange emerges not just as a business venture but as a statement on the importance of ethical practices in cryptocurrency.
With the beta version of Backpack Exchange already in motion and the intentions to sell a 10% stake at a valuation exceeding $100 million, the new exchange is poised to make a significant impact, The firm plans a broader launch soon, signaling a new era of customer-centric and ethically grounded practices in the cryptocurrency landscape.
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