A group of former executives from FTX, a leading cryptocurrency exchange, has come together to establish a revolutionary trading platform based in Dubai. Led by Can Sun, who previously served as FTX’s general counsel, the startup called Trek Labs obtained a license from Dubai’s crypto regulator last month, according to a recent report from The Wall Street Journal.
Joining Sun is Armani Ferrante, another ex-FTX employee, who now serves as the chief executive of Trek’s holding company in the British Virgin Islands. Ferrante also operates a partner firm called Backpack, specializing in designing and operating digital currency wallets. The launch of Backpack Exchange was announced by Ferrante, garnering attention in the press release.
The Focus on User Fund Protection
Sun and Ferrante share a common vision to address the challenges that led to the downfall of FTX. They are committed to prioritizing user fund protection, incorporating valuable lessons learned from their previous experiences. The core technology behind Trek Labs’ trading platform is provided by Backpack, which enables users to securely hold their funds in self-custody crypto wallets.
“Customers of Backpack Exchange will have the ability to verify their holdings at any time.”
– Can Sun
By using multiparty computation techniques, these wallets require approval from multiple parties for any transaction, preventing the exchange from unilaterally accessing users’ funds. This emphasis ensures enhanced security and transparency throughout the platform.
The Importance of Trust and Transparency
While Trek Labs is poised to make its mark in the crypto trading market, the founders are aware of the potential skepticism due to their association with FTX. Sun acknowledges that trust and transparency are crucial in creating a genuine alternative to existing players in the post-FTX era.
“Trust and transparency are key in creating a credible alternative in the post-FTX era.”
– Can Sun
To reinforce their team and expertise, Sun and Ferrante have recruited other former FTX legal and compliance employees at Trek Labs. Sun has been transparent about his previous role at FTX, disclosing it in regulatory filings and investor materials. He has also cooperated with regulatory authorities in Dubai, providing testimony against Sam Bankman-Fried, FTX’s founder, who was recently convicted for mishandling customer and company funds.
“During the trial, Sun testified that customer funds were segregated, but it was later revealed that funds had been diverted via a secret software backdoor.”
– Can Sun
Ferrante, too, experienced the collapse of FTX firsthand. With previous stints at Bankman-Fried’s trading firm, Alameda, and FTX, he witnessed the loss of funds during the exchange’s downfall. In Trek Labs, Ferrante holds a minority share in the holding company, alongside other former FTX employees.
While Trek Labs embarks on its mission to innovate the crypto trading landscape, FTX’s new management is engaged in legal actions to reclaim disbursed funds. The company has initiated lawsuits against individuals and entities, such as Kives and Bybit Fintech, aiming to recover significant amounts.
In summary, Trek Labs is setting itself apart with a focus on user fund protection, advanced technology provided by Backpack, and a team composed of seasoned individuals from the crypto industry. Trust and transparency are at the core of their values, as they strive to offer a genuine alternative for traders in the post-FTX era.
