As the crypto community ponders the next move for the collapsed Bahamian crypto exchange FTX, the former top executives have established a significant comeback in the digital sector. The return of the former executive aims at identifying the critical areas that went wrong during the leadership of Sam Bankman-Fried, former chief executive of FTX.
Primarily, the ex-FTX official agreed to secure the customers’ funds lost in the FTX saga by establishing a new firm, Backpack Exchange. The new venture will be situated in Dubai and will be led by Can Sun, a renowned legal practitioner.
Former FTX Executive Forms a New Venture
However, in the primary stage of setting up the new venture, FTX alums collaborated with Dubai-based crypto firm Trek Labs. The collaboration came after Trek Labs received the approval of the license to offer Dubai investors crypto-related services at the end of October.
Before the Virtual Asset Service Provider (VASP) license was approved by the Dubai Virtual Assets Regulatory Authority (VARA), Trek Labs announced plans to launch its crypto offering under Backpack Exchange.
According to the November 11 update, Sun outlined the management team for the new entity. He admitted that Armani Ferrante, the chief executive of Trek Holding and a former employee at FTX, will support the management of the new venture.
Sun stated that Claire Zhang, the wife of Ferrante, will also be a member of the Trek management team. However, in an earlier post, Zhang had revealed plans to leave office after Trek attained its primary objective.
She plans to quit after Trek completes the imminent investment round. Zhang referred to her current role as voluntary work seeking to support the bootstrap of the exchange.
Ex-FTX Managers Seeking to Safeguard Customers Funds
According to the announcement, Sun and Ferrante agreed to leverage their vast expertise and lessons learnt from the rise and fall of FTX to safeguard the customers’ funds.
The two executives admitted that the primary focus of the new exchange will be to implement advanced technologies to protect customers’ funds from losses. This will be attained by leveraging the BackPack proprietary tools, including multiparty computation (MPC) and self-custody services.
Sun and Ferrante believe that the BackPack MPC feature will ensure the customers’ funds are safe and secure. Occasionally, the MPC technologies follow a sequential procedure for funds approval and transfer.
Before completing the transaction, the Backpack customers are required to verify the transaction. According to Sun, following the aftermath of the collapse of FTX, it was essential to ensure transactions were transparent and reliable.
The executive confirmed that the crypto services to be offered by Backpack Exchange were still undergoing Beta testing. The former FTX officials anticipate that by the end of November, the Backpack Exchange will be allowed to proceed offering crypto services.