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 <p class="is-style-lead">Former FTX executives, including a witness against Sam Bankman-Fried, have <a rel="noopener noreferrer nofollow" title="launch" href="https://thebittimes.com/tag/launch.html">launch</a>ed a new crypto platform called Backpack that pledges transparency.</p>
 <p>According to the Wall Street Journal report, Can Sun, the former general counsel for FTX and a key witness in the trial of founder Bankman-Fried, is behind the new venture.</p>
 <p>A beta version of Backpack is expected to <a rel="noopener noreferrer nofollow" title="launch" href="https://thebittimes.com/tag/launch.html">launch</a> soon.</p>
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    <p lang="en" dir="ltr">A group of former FTX executives, including one who served as a key witness against Sam Bankman-Fried, are teaming up to build a new cryptocurrency <a rel="noopener noreferrer nofollow" title="exchange" href="https://thebittimes.com/tag/exchange.html">exchange</a> that aims to solve the problems that doomed their previous employer https://t.co/ZpsHtyHW4X https://t.co/ZpsHtyHW4X</p>— The Wall Street Journal (@WSJ) November 11, 2023
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 <p>The project will be operated by Dubai-based startup Trek Labs. It also plans to introduce a more secure and transparent trading model, leveraging lessons learned from the collapse of FTX. The platform is centered around “self-custody” wallets using multiparty computation for enhanced security.</p>
 <p>Sun, the brainchild behind the initiative, alongside another ex-FTX employee Armani Ferrante, is driven by the vision of restoring trust in the crypto market.</p>
 <p>Backpack Exchange is reportedly banking on a novel approach to trading with a system that requires multiple parties to approve transactions, thus giving users more authority and visibility over their assets.</p>
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 <p>The <a rel="noopener noreferrer nofollow" title="exchange" href="https://thebittimes.com/tag/exchange.html">exchange</a> will reportedly allow users to keep their assets in a proprietary self custody wallet that it can’t unilaterally access. According to Sun and Ferrante, the new approach aims to mitigate the risks associated with centralized control over funds, a significant concern highlighted by the FTX debacle.</p>
 <p>The <a rel="noopener noreferrer nofollow" title="exchange" href="https://thebittimes.com/tag/exchange.html">exchange</a> has a valuation goal exceeding $100 million for a 10% stake. Besides Sun and Ferrante, there are several other former FTX employees with roles in the new platform, including Sun’s former deputy, Claire Zhang.</p>
 <p>Sun has been transparent regarding his role at FTX and cooperated with Dubai’s regulatory bodies, adding what some feel is a layer of credibility to the endeavor.</p>
 <p>In the aftermath of the FTX debacle, he signed a nonprosecution agreement with U.S. authorities, and on Oct. 19, testified against his former boss.</p>
 <p>On his part, Ferrante leads the British Virgin Islands-registered holding company for the new project. He brings experience from his tenure at FTX and his work with digital currency wallets.</p>
 <p>In September 2022, his company raised $20 million in an investment round hemmed by FTX. However, Ferrante claims the company lost all the funds following the fall of FTX.</p>
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  </svg> <span class="cn-block-related-link__prefix"> Read more: </span> FTX token and other Sam Coins surge after Bankman-fried’s conviction
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/former-ftx-execs-launch-exchange-in-wake-of-fraud-scandal-tbt70015.html">https://thebittimes.com/former-ftx-execs-launch-exchange-in-wake-of-fraud-scandal-tbt70015.html</a></p>

Former FTX execs launch exchange in wake of fraud scandal

TheBitTimes

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