Former FTX general counsel Can Sun, alongside other ex-FTX executives, is venturing into uncharted territory with the establishment of Trek Labs, a Dubai-based cryptocurrency exchange. Armed with a newly obtained license from the Emirate’s crypto regulator, Trek Labs aims to rectify the mistakes that led to the downfall of their previous employer. The startup is now seeking investors and hopes to sell a 10% stake with a valuation exceeding $100 million.
Trek Labs stands as a testament to the determination of individuals such as Can Sun and his team to address the challenges that marred FTX’s reputation. Can Sun, who played a pivotal role as a key witness in the trial against Sam Bankman-Fried (SBF), provided crucial insight into the mismanagement of customer funds. Sun’s refusal to justify his former billionaire employer’s actions marked a turning point in the trial. Trek Labs also consists of other key figures from FTX, including Armani Ferrante, the CEO of Trek’s holding company.
Armani Ferrante, having witnessed the downfall of FTX firsthand, now finds himself a minority shareholder in Trek’s holding company. Despite facing losses when FTX collapsed, Ferrante’s experience and insights will be invaluable as Trek Labs charts a new course in the cryptocurrency landscape. Another former FTX employee, Claire Zhang, joins the ranks of Trek Labs and brings her expertise as Sun’s ex-deputy and Ferrante’s wife.
Sun and Ferrante are determined to incorporate the lessons learned from FTX’s failure into the fabric of Backpack Exchange, the name under which Trek Labs will operate. The exchange plans to implement Backpack’s technology, which allows users to hold funds in their own “self-custody” crypto wallets. Utilizing multiparty computation techniques, these wallets require approval from multiple parties for any transaction, ensuring heightened security and transparency. Furthermore, users can verify their holdings at any given time, setting Backpack Exchange apart in the industry.
Despite their background at FTX, Sun and Ferrante believe they can regain trust and establish transparency in the post-FTX landscape. Their focus on trust and transparency aligns with their vision of creating a true alternative to existing players in the crypto market. Sun emphasizes the importance of these principles, stating, “In a post-FTX world, you need trust and transparency to create a true alternative to the other players.”
With plans to launch Backpack Exchange in beta later this month, Trek Labs aims to provide users with a secure and transparent platform built on the lessons learned from FTX’s shortcomings. By leveraging their expertise and integrating innovative technologies, Trek Labs intends to rebuild confidence and offer a trustworthy alternative to the crypto community.
The establishment of Trek Labs represents a pivotal moment in the crypto industry. Former FTX executives, led by Can Sun and Armani Ferrante, are determined to address past failures and forge a new path forward. Trek Labs’ commitment to trust, transparency, and user empowerment sets the groundwork for a promising future in the ever-evolving world of cryptocurrencies. As they launch Backpack Exchange, users can look forward to a secure and transparent platform primed for success. Through the insights gained from their experiences, Trek Labs aims to reshape the industry and create lasting change.
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