YEREVAN (CoinChapter.com) — In what comes as a surprising twist of events surrounding Sam Bankman-Fried (SBF), former FTX executives, Can Sun and Armani Ferrante, have floated a new cryptocurrency exchange named Backpack.
However, the fact that Sun was embroiled in the company’s fraud scandal and that Ferrante worked for the exchange, raises significant concerns about possible conflicts of interest.
Their record of the duo challenges their trustworthiness as they seek investors to raise capital for their new venture. Moreover, Sun’s shift from accused to accuser, and now to leader of a competing platform, is troubling.
On Oct. 19, Can Sun took the stand to testify against SBF under a non-prosecution agreement. Did he help the law enforcement authorities take down his former boss with this in mind?
While Bankman-Fried was found guilty, one cannot overlook the fact that Sun was as much part of FTX. According to SBF’s testimony, he sought legal counsel from Sun when taking steps that eventually saw $9 billion in customer funds go missing.
His testimony against Bankman-Fried, while aiding justice, also conveniently cleared his path. Now leading Backpack, Sun’s past actions cast a shadow over his current ventures.
Backpack exchange promises transparency
Backpack exchange’s model, which, according to the company, is rooted in transparency and security, hinges on “self-custody” wallets. It comes as a response to FTX’s notorious collapse and aims to restore lost trust in the crypto market.
One could argue, that former FTX employees aren’t the best people to “restore” lost faith in crypto.
The launch of Backpack is not just about another crypto platform. Its founders, once part of FTX’s problematic regime, now seek to lead the crypto market they helped destabilize.
Yet, Sun and Ferrante are now spearheading an ambitious venture, set to achieve a valuation of over $100 million. According to reports, they plan to sell 10% of the firm’s shares to investors at that evaluation.
The company recently secured a license to operate an exchange in Dubai.
Bankman-Fried’s former colleagues have expressed their intention to apply the insights gained from FTX’s previous shortcomings to enhance the security of user funds.
Sun-led Trek Labs, which owns Backpack exchange, will enable users to store funds in their crypto wallets with “self-custody.” This ensures that the exchange cannot unilaterally access these wallets.
It is worth noting, that Ferrante serves as CEO of Trek’s holding company in the British Virgin Islands. According to a recent report by The Wall Street Journal, Claire Zhang, Ferrante’s wife, is also on Trek’s executive team. She previously served as Sun’s legal deputy at FTX.
Can a venture led by individuals so closely tied to Sam Bankman Fried’s massive fraud case truly break away from its shadow? While bringing expertise to Backpack, one should not overlook their collective past.
Therefore, the question remains: Should investors trust a platform led by those once part of a disastrous failure?
