Former FTX and Alameda Veterans Forge New Path With $17M Investment in Backpack Crypto Exchange
Former FTX and Alameda Research employees have pooled together a remarkable $17 million investment for their latest venture, a crypto exchange named Backpack.
The funding, secured through a series A funding round, has pushed Backpack’s valuation to $120 million and attracted capital from prominent firms such as Wintermute and Amber Group.
Backpack, which was launched in October last year, represents a new chapter for these former FTX and Alameda alums. Co-founded by Armani Ferrante and Can Sun, with Ferrante serving as CEO, the exchange has swiftly gained traction in the industry.
Notably, Sun, who previously served as FTX’s general counsel, testified as a government witness in Sam Bankman-Fried’s fraud case, shedding light on his unawareness of the firm’s illicit use of customer funds.
Despite initial hesitations from investors, Ferrante acknowledges that the scrutiny surrounding crypto exchanges, particularly in the aftermath of FTX’s troubles, has posed challenges. However, with a conviction in a New York courthouse last year, investor sentiment has gradually shifted in Backpack’s favor.
Based in Dubai, Backpack has already attracted a considerable user base of 420,000 users globally. With a reported one-way trading volume of $6.5 billion this month, the exchange is eyeing expansion into Asian markets, aiming to seize opportunities left behind by FTX.
The emergence of Backpack reflects a broader trend in the crypto industry, with several firms vying to cater to professional traders, a key demographic for exchanges like FTX. Notably, Fidelity-backed EDX Markets entered the fray in 2023, with plans for expansion into Singapore.
As Ferrante and Sun navigate their post-Alameda endeavors with Backpack, Sam Bankman-Fried faces the repercussions of a court’s guilty verdict.
The former FTX founder has appealed to the judge for leniency, citing his autism and expressing remorse for the $8 billion fraud.
Federal prosecutors are set to announce their recommended sentence length on Mar. 15, with sentencing scheduled for Mar. 28.
