- Executives of the defunct FTX exchange team up to form a new crypto exchange.
- Can Sun and others claim to aim at solving the problems that led to FTX’s downfall.
- The new team recently received a license from the crypto regulators in the UAE.
Some former executives of the defunct FTX exchange have teamed up to form a new cryptocurrency exchange, according to a report by The Wall Street Journal. Can Sun, the former general counsel of FTX, and a few other former FTX executives claim that they aim to use the new crypto exchange to solve the problems that led to the downfall of their former employer.
Sun is the leader of Trek Labs, a Dubai-based startup that recently received a license from the crypto regulators in the United Arab Emirates (UAE). Following the license acquisition, Trek Labs reportedly aims to sell a 10% stake to investors valued at $100 million.
Armani Ferranti, another former FTX employee, is currently the chief executive of Trek’s holding company in the British Virgin Islands. Ferrante’s wife, who served as Sun’s legal deputy at FTX, is also part of the Trek Lab executive team.
According to Sun, in a post-FTX world, creating a genuine alternative to other players requires trust and transparency. He noted that Backpack Exchange, the name under which Trek Labs will carry out its business, will use a technology that allows users to hold funds in their self-custody crypto wallets. He explained that the wallet design would make it impossible for the Backpack exchange to unilaterally access users’ funds.
Sam Bankman-Fried, former FTX CEO, was recently found guilty of seven counts of fraud and money laundering. During the court hearing, the US Attorney’s office in the Southern District of New York claimed that Bankman-Fried perpetrated one of the biggest financial frauds in the history of the United States.
The former CEO was also found guilty of conspiracy to commit commodities fraud and conspiracy to commit securities fraud. Bankman-Fried is scheduled to be sentenced on March 28, 2024, and faces decades in jail.
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