Former FTX Executives Collaborate on New Dubai-Based Crypto Exchange – Here’s the Latest
A group of former FTX executives have joined forces to establish a new crypto trading platform based in Dubai.
Led by Can Sun, the former general counsel of FTX, the startup is called Trek Labs and received a license from Dubai’s crypto regulator last month, according to a recent report from The Wall Street Journal .
Armani Ferrante, another ex-FTX employee, serves as the chief executive of Trek’s holding company in the British Virgin Islands and also operates a partner firm called Backpack, which specializes in designing and operating digital currency wallets.
Ferrante’s name was the one featured in the press release announcing the launch of Backpack Exchange.
Sun and Ferrante told the WSJ that they aim to address the issues that led to the downfall of FTX.
They emphasize the importance of user fund protection, drawing from the lessons learned from their previous experience.
Backpack Exchange, the trading name for Trek Labs, will use Backpack’s technology to enable users to hold their funds in self-custody crypto wallets.
These wallets employ multiparty computation techniques, requiring multiple parties’ approval for any transaction.
By doing so, the exchange itself won’t have unilateral access to users’ funds, ensuring enhanced security and transparency.
Customers of Backpack Exchange will have the ability to verify their holdings at any time.
However, given their association with FTX, it remains uncertain how investors and users will respond to Trek Labs.
Sun acknowledges that trust and transparency are crucial in creating a genuine alternative to existing players in the post-FTX era.
To bolster their team, Sun and Ferrante have hired other former FTX legal and compliance employees at Trek Labs.
