Former FTX executives have launched a new crypto platform called Backpack that pledges transparency and empowerment to users.
According to the Wall Street Journal, Can Sun, the former general counsel for FTX and a witness in the trial of Bankman-Fried, is behind the venture.
The platform, which is set to launch a beta version soon, will be operated by Dubai-based startup Trek Labs, promising a more secure and transparent trading model and drawing lessons from the collapse of FTX.
The core idea of Backpack Exchange revolves around a “self-custody” approach, using multiparty computation for added security in user wallets. Sun, alongside ex-FTX employee Armani Ferrante, aims to restore trust in the crypto space through this initiative.
According to the WSJ, the exchange stands out with a unique trading system that requires approval from multiple parties for transactions, offering users more control and visibility over their assets.
Additionally, users can store their assets in a self-custody wallet that the exchange cannot access unilaterally, mitigating the risks associated with centralized control over funds, a concern heightened after the FTX incident.
With a targeted valuation surpassing $100 million for a 10% stake, the exchange has garnered support from former FTX employees, including Claire Zhang, Sun’s former deputy. Moreover, Sun’s cooperation with Dubai authorities and testimony against Bankman-Fried on Oct. 19 add credibility to the project.
Furthermore, Armani Ferrante is a holding company for Backpack Exchange, bringing experience from his times at FTX and his involvement with digital currency wallets.