A team of former FTX and Alameda Research employees have secured $17 million in funding to establish Backpack, a crypto exchange. Moreover, the team has stepped in to address the gap left by the downfall of their former employer Sam Bankman-Fried’s crypto empire.

Former FTX & Alameda Employees Acquire $17 Million Seed Funding

Backpack, headquartered in Dubai, offers not just a crypto exchange but also a wallet and an NFT collection called Mad Lads. With this Series A round, the company reached a valuation of $120 million. Armani Ferrante, the CEO and co-founder, previously worked at Alameda Research, while another co-founder, Can Sun, served as FTX’s former general counsel. Among its 40-person team, five were previously employed at FTX.

The exchange went live in October 2023 and has obtained a virtual-asset service provider license in Dubai. The Series A funding was spearheaded by Placeholder VC, a crypto venture firm, with contributions from Wintermute, Robot Ventures, Selini Capital, Amber Group, and others. Backpack is now expanding into select states in the US.

According to a Bloomberg report, Ferrante emphasized, “Creating an exchange today is very different than creating an exchange a year or two years ago. Especially after the catastrophe that was FTX, I think the bars are so much higher now.”

Following FTX’s collapse, Sun noted encountering skepticism in business meetings due to their association with FTX. However, he stated, “We’ve not seen that as much since then.”

Backpack boasts over 420,000 verified users globally and has gained popularity among Chinese-speaking users. Ferrante highlighted the significant market in Asia for crypto trading venues. The company reported $6.53 billion in one-side trading volume in February.

Backpack joins a wave of recent launches seizing opportunities arising from FTX’s demise. EDX Markets, backed by Citadel Securities and Fidelity Digital Assets, went live last year and is expanding into Singapore. Meanwhile, in Europe, Rulematch launched in December, targeting financial institutions.

Also Read: Sam Bankman-Fried Shilling Solana In Jail, What Could Go Wrong?

Sam Bankman-Fried Expresses Advocacy For Solana

Elsewhere, Sam Bankman-Fried, founder of the bankrupt crypto exchange FTX, has been making unexpected claims from behind bars. He has been held at the Metropolitan Detention Center in Brooklyn since last summer, awaiting sentencing after being convicted of charges linked to the collapse of FTX. Sources familiar with the matter reveal that Bankman-Fried has been advocating for investments in Solana (SOL) while in the jail.

Despite facing a pending sentencing date and the uncertainties surrounding his future, Bankman-Fried has reportedly been actively discussing crypto market trends with staff at the detention center. Moreover, he has been sharing investment tips regarding Solana with the guards. This could lead to enhanced legal scrutiny.

Also Read: Sam Bankman Fried’s Defense Counsel Proposes 6 Year Sentence or Less

The post Former FTX & Alameda Execs Secures $17 Mln Funding For Dubai Crypto Startup appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am