Former FTX General Counsel Can Sun To Lead New Dubai Crypto Exchange

Updated: 13 November 2023

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Former FTX general counsel Can Sun, who testified against former boss Sam Bankman-Fried at his fraud trial, will lead a new crypto exchange in Dubai that aims to sell a 10% stake to investors at a valuation of more than $100 million, the Wall Street Journal reported.

The Web3 digital wallet company Backpack announced the exchange last month, and now it’s been confirmed that Sun and other FTX colleagues are involved in the venture, the WSJ said.

Can’s Trek Labs startup is the legal entity through which Backpack Exchange will operate in Dubai. Armani Ferrante, another ex-FTX employee, is now the CEO of Trek Labs, the story said. Ferrante was previously an engineer at FTX affiliate Alameda Research.

Ferrante’s wife Claire Zhang, a former legal deputy of Sun’s, sits on the executive board of Trek Labs.

A group of former FTX executives, including one who served as a key witness against Sam Bankman-Fried, are teaming up to build a new cryptocurrency exchange that aims to solve the problems that doomed their previous employer https://t.co/ZpsHtyHW4X https://t.co/ZpsHtyHW4X

— The Wall Street Journal (@WSJ) November 11, 2023

Can Sun Didn’t Know About FTX Misdoings

Sun testified against Bankman-Fried in his high-profile trial on fraud and conspiracy under a “no-prosecution agreement,” or “immunity deal.” He denied knowing or being involved in any of the misdoings that caused FTX’s bankruptcy, and resigned a day after he knew about a massive hole in the FTX balance sheet.

With the latest professional venture, Sun and Ferrante will be launching the beta version of the platform later in the month.

Backpack Exchange is already licensed in Dubai and recognized by the Dubai Virtual Assets Regulatory Authority (VARA).

A previous announcement revealed that the Backpack Exchange team will be working to add various trading functionalities such as derivatives, margin [and] cross-collateral.” It also revealed that its compliance team has a professional history working with Barclays, State Street, HSBC, and Coinbase.