{"id":83868,"date":"2023-11-13T05:30:15","date_gmt":"2023-11-13T10:30:15","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/former-ftx-executives-collaborate-on-new-dubai-based-crypto-exchange-heres-the-latest\/"},"modified":"2023-11-13T05:30:17","modified_gmt":"2023-11-13T10:30:17","slug":"former-ftx-executives-collaborate-on-new-dubai-based-crypto-exchange-heres-the-latest","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=83868","title":{"rendered":"Former FTX Executives Collaborate on New Dubai-Based Crypto Exchange \u2013 Here&#8217;s the Latest"},"content":{"rendered":"<div>\n<figure id=\"attachment_130247\" aria-describedby=\"caption-attachment-130247\" style=\"width: 640px\" class=\"wp-caption aligncenter\"><noscript><\/noscript><figcaption id=\"caption-attachment-130247\" class=\"wp-caption-text\">Image Source: Pixabay<\/figcaption><\/figure>\n<p><span data-preserver-spaces=\"true\">A group of former FTX executives have joined forces to establish a new crypto trading platform based in Dubai.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Led by Can Sun, the former general counsel of FTX, the startup is called Trek Labs and received a license from Dubai\u2019s crypto regulator last month, according to a recent\u00a0<\/span><span data-preserver-spaces=\"true\">report from The Wall Street Journal<\/span><span data-preserver-spaces=\"true\">.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Armani Ferrante, another ex-FTX employee, serves as the chief executive of Trek\u2019s holding company in the British Virgin Islands and also operates a partner firm called Backpack, which specializes in designing and operating digital currency wallets.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Ferrante\u2019s name was the one featured in the press release announcing the launch of Backpack Exchange.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Sun and Ferrante told the WSJ that they aim to address the issues that led to the downfall of FTX.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">They emphasize the importance of user fund protection, drawing from the lessons learned from their previous experience.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Backpack Exchange, the trading name for Trek Labs, will use Backpack\u2019s technology to enable users to hold their funds in self-custody crypto wallets.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">These wallets employ multiparty computation techniques, requiring multiple parties\u2019 approval for any transaction.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">By doing so, the exchange itself won\u2019t have unilateral access to users\u2019 funds, ensuring enhanced security and transparency.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Customers of Backpack Exchange will have the ability to verify their holdings at any time.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">However, given their association with FTX, it remains uncertain how investors and users will respond to Trek Labs.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Sun acknowledges that trust and transparency are crucial in creating a genuine alternative to existing players in the post-FTX era.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Trek Labs Hire More Former FTX Employees<\/span><\/h2>\n<p><span class=\"replacer\"><\/span><br \/><span data-preserver-spaces=\"true\">To bolster their team, Sun and Ferrante have hired other former FTX legal and compliance employees at Trek Labs.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Notably, Sun has been transparent about his previous role at FTX, disclosing it in regulatory filings and investor materials.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He also informed Dubai\u2019s regulatory authorities about his testimony against Sam Bankman-Fried, the founder of FTX, who was recently convicted for commingling customer and company funds.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">During the trial, Sun testified that Bankman-Fried had assured him that customer funds were segregated and protected, but it was later revealed that funds had been diverted to Bankman-Fried\u2019s trading firm via a secret software backdoor.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Sun refused to provide legal justifications for the use of customer funds, leading to his departure from FTX.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">He later cooperated with the investigation and signed a nonprosecution agreement with federal prosecutors.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Ferrante, too, witnessed the FTX disaster firsthand.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Having worked at Alameda, Bankman-Fried\u2019s trading firm, and then at FTX, he experienced the collapse of the exchange and the subsequent loss of funds.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In Trek Labs, Ferrante holds a minority share in the holding company, alongside other former FTX employees.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Meanwhile, FTX\u2019s new management has been trying to reclaim funds disbursed prior to its Chapter 11 filing in November of the previous year.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For one, the company has initiated legal action against Kives and his venture capital firm, K5, to\u00a0<\/span><span data-preserver-spaces=\"true\">recover the estimated $700 million<\/span><span data-preserver-spaces=\"true\">\u00a0Bankman-Fried had invested in it.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The complaint claims that Bankman-Fried was a \u201cprofligate patron\u201d who sent millions to Kives, K5 Global, and Baum after he attended a social event hosted by Kives in 2022.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">More recently, FTX\u2019s bankruptcy advisers\u00a0<\/span><span data-preserver-spaces=\"true\">filed a lawsuit<\/span><span data-preserver-spaces=\"true\">\u00a0against Bybit Fintech to recover $953 million worth of cash and digital assets that were withdrawn from the exchange prior to its Chapter 11 filing a year ago.<\/span><\/p>\n<p>\u00a0<\/p>\n<div class=\"newsletter home-newsletter single\">\n<div class=\"left-side\">\n<p>\n        <em><br \/>\n            Enter your email for our Free Daily Newsletter        <\/em>\n    <\/p>\n<p> A quick 3min read about today&#8217;s crypto news!<\/p>\n<p>    <span class=\"response-msg\" id=\"newsletter-response\"><\/span>\n<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>Read the full article <a href=\"https:\/\/cryptonews.com\/news\/former-ftx-executives-collaborate-on-new-dubai-based-crypto-exchange-heres-the-latest.htm\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Image Source: Pixabay A group of former FTX executives have joined forces to establish a new crypto trading platform based in Dubai.\u00a0 Led by Can Sun, the former general counsel of FTX, the startup is called Trek Labs and received a license from Dubai\u2019s crypto regulator last month, according to a recent\u00a0report from The Wall [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":83869,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-83868","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Former FTX Executives Collaborate on New Dubai-Based Crypto Exchange \u2013 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