Latest Articles

What is the Exit Fee for Mutual Funds?

Mutual funds have long been a popular investment choice for individuals seeking diversification and professional management. However, as with many financial products, mutual funds...
HomeCryptoFormer FTX Executives Launch Backpack Exchange in Dubai with Enhanced Focus on...

Former FTX Executives Launch Backpack Exchange in Dubai with Enhanced Focus on Fund Security

A group of former FTX executives, led by ex-FTX lawyer Can Sun, has collaborated to establish a new cryptocurrency exchange named Backpack Exchange in Dubai. The startup, Trek Labs, secured a license for cryptocurrency services in October. The initiative is notably focused on addressing the issue of securing customer funds, a concern that was highlighted in FTX’s previous challenges.

Sun, who played a key role at FTX, is joined by Armani Ferrante, the CEO of Trek’s holding company in the British Virgin Islands. Ferrante also manages Backpack, an integrated cryptocurrency wallet associated with Backpack Exchange. To enhance fund security, Backpack utilizes a self-custody solution with multiparty computation (MPC) technology, allowing customers to verify funds at their discretion.

Claire Zhang, Sun’s former legal deputy at FTX and Ferrante’s wife, is part of Trek’s executive team. However, Zhang plans to transition out of the company once an investment round is raised. The team aims to apply lessons learned from FTX’s past issues, particularly in safeguarding customer funds.

Backpack Exchange is currently in beta, with a broader launch scheduled for later this month. The initiative is a notable move by the former FTX executives to apply their experiences and insights in developing a more secure and customer-friendly cryptocurrency exchange in the dynamic Dubai market.