Crypto News- In a surprising twist, the former General Counsel of FTX, Can Sun, has unveiled a groundbreaking initiative in the form of Backpack Exchange. The venture emerges as a response to the issues that contributed to the downfall of Sun’s previous employer, FTX. Notably, Sun played a pivotal role as a key witness in the criminal trial of ex-FTX CEO Sam Bankman-Fried (SBF), testifying under a no-prosecution agreement.
Former FTX General Counsel Ventures into Crypto with Trust-Centric Exchange Launch
According to The Wall Street Journal, Sun is taking the lead in this new exchange, slated to launch its beta version later this month. The ambitious project aims to secure investors by offering a 10% stake, valuing the enterprise at a staggering $100 million or more.
Interestingly, Sun’s involvement was initially undisclosed when Backpack, the Web3 digital wallet company founded by Armani Ferrante, introduced the exchange last month. Claire Zhang, Ferrante’s wife and former legal deputy of Sun’s, also holds a position on the executive board of Trek Labs, the Dubai-based entity operating as Backpack Exchange.
Trek Labs, backed by a license from the Dubai Virtual Assets Regulatory Authority (VARA), places a strong emphasis on regulatory compliance in the digital asset space. Sun has strategically brought on board former FTX legal and compliance staff, underscoring the commitment to transparency in the operations of Trek Labs.
Addressing the shortcomings of FTX, Backpack Exchange plans to leverage Backpack’s cutting-edge technology. The platform will enable users to maintain funds in their own “self-custody” crypto wallets, employing advanced multiparty computation techniques for enhanced security. Users will have the unprecedented ability to independently verify their holdings, marking a departure from the commingling issues that plagued FTX under SBF’s leadership.