In a significant development within the cryptocurrency sphere, a team comprised of former FTX and Alameda Research personnel has successfully raised $17 million in a Series A funding round for their crypto exchange venture, Backpack. The investment, which values Backpack at $120 million, saw participation from prominent firms such as Wintermute and Amber Group.
Led by Armani Ferrante and Can Sun, both veterans of the crypto industry, Backpack emerges as a promising player in the exchange landscape. Ferrante, serving as CEO, brings valuable experience from his tenure at Alameda Research, while Sun, who previously held a role at FTX, has been pivotal in steering the venture forward.
Despite challenges stemming from FTX’s tumultuous past, including Sun’s involvement as a government witness in legal proceedings against Sam Bankman-Fried, Backpack has managed to garner substantial attention and support from investors. The exchange, headquartered in Dubai, has swiftly amassed a user base of 420,000 individuals globally, with a reported one-way trading volume of $6.5 billion this month alone.
With aspirations to tap into Asian markets and capitalize on the demand left by FTX, Backpack aims to carve out its niche, particularly among professional traders. This endeavor comes amidst a burgeoning trend of new entrants seeking to cater to this demographic, exemplified by the launch of Fidelity-backed EDX Markets in 2023 with a strategic expansion into Singapore.
While Ferrante and Sun are focused on propelling Backpack’s growth and distancing themselves from their Alameda ties, Bankman-Fried faces the consequences of a court ruling on charges related to fraud. As he awaits sentencing, Bankman-Fried has pleaded for leniency, citing his autism and expressing remorse for his actions.
As the cryptocurrency ecosystem continues to evolve, Backpack’s emergence signals a new chapter in the industry’s narrative, underscored by innovation, resilience, and a relentless pursuit of progress.
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