Former FTX executives, including a key witness in the case against Sam Bankman-Fried, have introduced a novel cryptographic platform called Backpack. This venture is marked by a dedicated commitment to transparency.
As reported by the Wall Street Journal, Can Sun, the former legal luminary of FTX, plays a pivotal role in legal proceedings against the founder, Bankman-Fried. He is at the forefront of spearheading this emerging initiative.
This project is overseen by Trek Labs, a startup based in Dubai. The strategy they employ involves the introduction of a more robust and transparent trading model. This approach draws insights from the unraveling of FTX. The core of the platform revolves around “self-custodial” wallets, utilizing multiparty computation to enhance security.
Restoring Trust in Cryptocurrency: The Innovative Approach of Backpack Exchange
Sun, the originator of this endeavor, alongside another former member of FTX, Armani Ferrante, is driven by the goal of restoring trust in the cryptocurrency market.
Allegedly, Backpack Exchange is relying on an innovative trading approach. A system is in place that necessitates approval from multiple stakeholders for transactional validation. This system empowers users, providing them with increased control and visibility over their assets.
Notably, this exchange purportedly enables users to secure their assets within an exclusive self-custodial wallet, beyond the unilateral control of the platform.
Sun and Ferrante suggest that this avant-garde approach aims to mitigate the risks associated with centralized control over funds, a concern spotlighted by the FTX debacle.
The valuation objective for the exchange surpasses $100 million for a 10% stake. Alongside Sun and Ferrante, numerous other former FTX operatives play crucial roles in this new initiative, including Sun’s former deputy, Claire Zhang.
FTX Executives: Navigating Cryptocurrency Innovation with Transparency and Testimony
However, Sun has been transparent about his role at FTX. Furthermore, He has cooperated with regulatory authorities in Dubai, adding a layer of credibility to this venture as perceived by some.
Following the tumultuous events surrounding FTX, Sun entered a non-prosecution agreement with U.S. authorities. On October 19, he testified against his former superior.
Ferrante, in his capacity, directs the holding company registered in the British Virgin Islands, overseeing this innovative undertaking. He brings to the forefront experiences garnered during his tenure at FTX and his involvement with digital currency wallets.
In September 2022, his company secured a $20 million investment facilitated by FTX. However, Ferrante asserts that the entirety of these funds dissipated in the aftermath of FTX’s downfall.