- Former FTX executives have established a new crypto exchange in Dubai, emphasizing security and self-custody of funds.
- Backpack Exchange, launched by Trek Labs, incorporates advanced multiparty computation techniques for enhanced fund security.
In a significant development within the cryptocurrency sector, a group of former FTX executives have come together to launch a new crypto exchange in Dubai. This initiative is spearheaded by ex-FTX lawyer Can Sun and Armani Ferrante, with a core focus on addressing a critical issue that led to FTX’s downfall: the security of customer funds.
Trek Labs: Setting New Standards in Crypto Security
Dubai-based Trek Labs, under the leadership of Can Sun, has secured a license to provide cryptocurrency services in the region. This venture, named Backpack Exchange, represents a concerted effort to learn from the pitfalls of FTX and to offer a more secure and transparent alternative in the crypto exchange domain.
With things heating up, please be aware of phishing attacks on the rise.
Backpack will NEVER ask you for your private keys.
The only valid website URLs are in our bio. Assume anything else is a scam.
— Backpack 🎒 (@xNFT_Backpack) November 11, 2023
Sun, along with his former FTX colleague and CEO of Trek’s holding company in the British Virgin Islands, Armani Ferrante, are at the forefront of this initiative. Ferrante, who also oversees Backpack, a cryptocurrency wallet, is integral to integrating this wallet service within the Backpack Exchange.
A key feature of Backpack Exchange is its emphasis on self-custody solutions, employing a sophisticated multiparty computation (MPC) technique. This approach ensures enhanced security of funds by necessitating multiple party approvals for transaction execution. This system is designed to offer users the ability to verify their funds independently, fostering an environment of trust and transparency, crucial in the post-FTX world of cryptocurrency exchanges.
Backpack Exchange is currently undergoing beta testing, with plans for a broader launch in the near future. This platform’s development comes in the wake of the FTX scandal, where misuse of customer funds by the exchange’s former CEO Sam Bankman-Fried led to a massive financial debacle.
Can Sun, who testified against Bankman-Fried in his fraud trial, remarked that his departure from FTX’s legal counsel was prompted by ethical concerns over the misuse of customer funds. This experience has evidently shaped the vision and ethos behind Trek Labs and Backpack Exchange.
The launch of Backpack Exchange is not just a new chapter for the involved former FTX executives but also marks a significant stride in the evolution of cryptocurrency exchanges. By prioritizing security and self-custody of funds, Trek Labs is setting a new standard in the industry, aiming to restore user trust and redefine the landscape of digital currency transactions.