Ex-FTX Executives Reportedly Launching New Crypto Exchange in Dubai

Ex-FTX Executives Reportedly Launching New Crypto Exchange in Dubai

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by Max Nevskyi

3 years ago


Recently, there has been a significant development in the cryptocurrency world, particularly concerning FTX, a company that has been a major topic of discussion lately. A group of former FTX executives have convened in Dubai with a mission to create a new cryptocurrency exchange. This new venture aims to achieve what FTX could not, especially in the wake of its bankruptcy. Their primary goal is to safeguard the funds of FTX customers.

Can Sun, who previously served as a lawyer for FTX, has taken up a role at Trek Labs, a Dubai-based company that recently acquired a license to provide cryptocurrency services in the region. This new role began at the end of October. Trek Labs is set to offer these services through Backpack Exchange.

A report from the Wall Street Journal dated November 11 highlights that Sun is collaborating with Armani Ferrante, another ex-FTX employee. Ferrante is currently the CEO of a holding company in the British Virgin Islands, which is affiliated with Trek Labs. He is also promoting Backpack, a Web3 wallet that is integrated with Backpack Exchange.

Another notable figure in this development is Claire Zhang, who was Sun's legal assistant at FTX and is also Ferrante's spouse. Zhang is a key member of the Trek Labs management team. However, the Wall Street Journal report indicates that Zhang is contemplating leaving the company, as she has been working without compensation to help bolster the exchange's financial situation until Trek Labs secures investment.

Sun and Ferrante have expressed their intention to apply the lessons they learned from the failure to protect customer funds at FTX. Backpack Exchange is introducing a self-custody feature that employs the multi-party computation (MPC) technique to enhance fund security.

Currently, Backpack Exchange is undergoing testing and is expected to have a more extensive launch by the end of the month. Sun played a crucial role in the fraud case against Sam Bankman-Fried, the former CEO of FTX, by testifying as a witness. Sun disclosed that Bankman-Fried had sought legal rationale for the presence of FTX funds with Alameda Research. Following the trial, Bankman-Fried was found guilty on all seven charges related to the fraud.

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