Former FTX Executives Join Forces to Create New Cryptocurrency Exchange
A group of former FTX executives, including a key witness against Sam Bankman-Fried, have come together to establish a new cryptocurrency exchange with the goal of addressing the challenges that led to the downfall of their previous employer. Led by former FTX lawyer Can Sun, the Dubai-based startup Trek Labs has obtained a license to provide cryptocurrency services in the region, under the name Backpack Exchange.
Securing a License for Backpack Exchange
The license for Trek Labs to provide cryptocurrency services was granted in late October. This new venture aims to offer a trustworthy and transparent platform for cryptocurrency exchange users. With about $9 billion in customer deposits disappearing from FTX and the company’s head facing legal troubles, the team is focused on creating a new, reliable option for cryptocurrency investors.
The Vision for Safeguarding Payments at Backpack Exchange
Sun and Ferrante, the former FTX executives, have emphasized their vision for securing user payments at Backpack Exchange. They intend to apply insights from FTX’s failure in this regard and utilize new technologies to allow users to store funds in personal crypto wallets, giving them full control over their assets. Additionally, the exchange plans to integrate a digital wallet called Backpack within its platform, overseen by Ferrante, the current CEO of Trek’s holding company in the British Virgin Islands.
The Uncertain Reception for the New Exchange
Former FTX executives embarking on the venture with Backpack Exchange face uncertainty in terms of investor and user reception, particularly with Ferrante’s prominent role in the new venture. The team acknowledges the challenge of establishing trust and transparency as they transition from their association with FTX to the new project. Sun, in particular, emphasizes the need for trust and transparency in a post-FTX landscape.
A Pledge to Simplicity and Trust in the Post-FTX Era
In light of their experiences with FTX, the executives at Trek Labs and Backpack Exchange are determined to bring simplicity and trust to the world of cryptocurrency. They aim to rewrite the story of FTX’s troubles by offering a straightforward and reliable experience for users in the evolving digital landscape. Despite the skepticism that lingers from FTX’s past, Trek Labs is focused on making crypto easy and transparent for all users.
### News source: bitcoinist.com