Former FTX President Secures $35M to Launch New Derivatives Platform
A key figure from the collapsed FTX empire is back—and he's got fresh capital.
From the Ashes, a New Bet
The move signals a bold re-entry into one of crypto's most lucrative and complex arenas. Derivatives trading, long dominated by centralized giants, is ripe for a shake-up. This platform aims to capture that momentum, leveraging lessons learned from the industry's most public failure.
The $35 Million Question
Raising that kind of capital in today's climate isn't just a vote of confidence—it's a statement. Investors are betting that experience, even forged in a notorious collapse, holds unique value. The funding suggests a belief that the market has moved past pure idealism and into a phase that prizes pragmatic, institutional-grade infrastructure. After all, what's a few billion in lost customer funds between friends when there's new fee revenue to be made?
A Calculated Gamble on Crypto's Future
This isn't just another exchange launch. It's a high-stakes wager that the demand for sophisticated crypto financial products will only intensify. The team is building for a future where digital asset derivatives are as commonplace as their traditional counterparts. Whether this becomes a phoenix story or a cautionary tale depends entirely on execution. The industry watches, one eye on innovation, the other firmly on the guardrails that were so conspicuously absent last time.
FTX Collapse and Architect’s Regulated Perps
Round participants were Miax, Tioga Capital, ARK Investment, Galaxy, and VanEck. The blend indicates the support of both conventional operators of the market and crypto-oriented companies. The investment is based on a raising that started in 2024, after a funding round of $12 million involving Coinbase Ventures and Circle Ventures, among others, and SALT Fund.
The funding follows the regulatory approval that Architect received in Bermuda. The license will enable the firm to provide perpetual futures contracts associated with conventional assets. These are the stocks, commodities, and foreign currencies. BitMEX was the first exchange to popularize perpetual futures, which are also referred to as perps. It was subsequently turned into a flagship product at the now-collapsed FTX.
Architect will be oriented towards professional and corporate traders. The platform will be providing algorithmic trading platforms and sophisticated risk management indicators, as well as multi-asset derivative provisions. The company has also been giving indications that it is going to MOVE outside of Bermuda. Its targeted markets are Europe and the Asia-Pacific region.
S&P Global Flags Liquidity Risks in Derivatives Markets
Derivatives represent the largest markets in global finance. It is estimated that there is a notional value of outstanding contracts that can run into hundreds of trillions of dollars. This is many times higher in terms of economic output in the world. The scale puts emphasis on the reasons why liquidity and quality of infrastructure are still imperative.
According to an S&P Global report in February, derivative markets are in the process of evolving. However, most asset classes still exhibit imbalanced liquidity. Investors are becoming more concerned with highly liquid products with narrow bid-ask.
Derivatives trading has been extensively adopted in the crypto industry. It is estimated that derivatives cover 75 to 80% of all exchanges. This preeminence has intensified risk exposure. On the 10th of October, the liquidation event felt its impact, wiping out about $19 billion in one day.
