Can Sun, the former FTX general counsel, lead former executives from FTX to establish a new cryptocurrency exchange after its bankruptcy. The motivation to correct the mistakes that led to the collapse of FTX is driving this initiative. The goal is to rebrand it within the crypto landscape strategically.
Sun is a key witness who has given evidence against SBF under the no-prosecution agreement in his criminal case. Wall Street Journal reveals that this month, Sun will launch a new exchange in beta aimed at raising over $100 million through a 10% stake sale.
Last month, Armani Ferrante’s Web3 digital wallet company, Backpack, announced the establishment of an exchange. Interestingly, Sun’s involvement was not disclosed at the time. Claire Zhang, who formerly served as Sun’s deputy attorney and is Ferrante’s wife, attends Trek Labs’ executive board. A Dubai-based entity known as Backpack Exchange is also part of the board.
Trek Labs must obtain licensing from the Dubai Virtual Assets Regulatory Authority (VARA) to ensure regulatory compliance and transparency in their new exchange operations. By hiring former FTX legal and compliance teams, Trek Labs proves its commitment to transparency.
FTX Disruption: Backpack Exchange’s Secure Crypto Wallet Solution
Backpack Exchange plans to make Backpack’s technology allow users to keep their funds in their own crypto wallets. Security-wise, this includes multiparty computation mechanisms for independent verification of user holdings, significantly deviating from FTX’s history of mingling customer and company funds.
Moreover, the arrival of this exchange is anticipated to impact the cryptocurrency market positively. It will serve as a regulated and secure digital asset trading platform. Having acquired a license from Dubai, the venture would have the opportunity to break into Middle East markets rapidly developing versus existing players, especially FTX, struggling with bankruptcy repercussions and other legal problems.
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The undertaking means an opportunity for Sun and his team to redeem themselves personally. They aim to re-establish their reputation and credibility in cryptocurrency by offering former FTX clients and investors a dependable and transparent option.