In a move toward transparency and user empowerment, former FTX executives, including Can Sun, the ex-general counsel for FTX, have launched a new crypto platform named Backpack. Sun, who played a key role as a witness in the trial of Sam Bankman-Fried, spearheads this initiative, aiming to address lessons learned from the collapse of FTX.
Operated by Trek Labs: Emphasizing Security and Transparency
Backpack, set to launch a beta version soon, is operated by Dubai-based startup Trek Labs. The platform is designed to offer a more secure and transparent trading model, with an emphasis on user empowerment. The core concept revolves around a “self-custody” approach, employing multiparty computation for enhanced security in user wallets.
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 exchange that aims to solve the problems that doomed their previous employer https://t.co/ZpsHtyHW4X https://t.co/ZpsHtyHW4X
— The Wall Street Journal (@WSJ) November 11, 2023
Distinguishing itself in the crypto space, Backpack Exchange introduces a unique trading system requiring approval from multiple parties for transactions. This feature provides users with heightened control and visibility over their assets, a response to concerns stemming from the FTX incident.
Mitigating Risks: Self-Custody Wallets and Dubai Cooperation
Backpack Exchange has garnered support from former FTX employees, including Claire Zhang, Sun’s former deputy, showcasing a unified effort to redefine industry standards. Sun’s collaboration with Dubai authorities and his testimony against Bankman-Fried on Oct. 19 adds credibility to the project. The exchange targets a valuation surpassing $100 million for a 10% stake, underlining the confidence in its potential success.