New VC Funding Helps Amber Group Address Some Aftermath Of The FTX Contagion
On December 15th, Amber Group, a crypto trading platform, announced that it had finalized a $300 million Series C fundraising round. Fenbushi Capital US, a blockchain-driven VC firm, headed the funding round.
The latest funding round comes as the company pauses its Series B fundraising round. Amber decided to continue with the Series C funding round after its exposure to the now-bankrupt FTX.
Before the FTX saga, Amber was conducting a Series B funding round. The funding round would have raised the company’s valuation to $3 billion.
According to reports, the firm planned to realize $100 million from the Series B funding. The target date for the completion of the round was January 2023.
In the middle of December, Amber realized about $50 million from a Series B funding round. Meanwhile, the latest funding will allow Amber to address some of the company’s setbacks following the FTX crisis.
Amber said it had to readjust its funding technique due to the FTX saga. Also, the crypto platform said it would now narrow its efforts toward core businesses.
Additionally, Amber reaffirmed that the latest FTX saga did not affect its daily business operations. However, 10% of the company’s trading capital was on FTX before it went bankrupt.
Hence, it is unlikely that the FTX contagion did not affect Amber’s operations. Meanwhile, Annabelle Huang, the company’s managing partner, confirmed earlier this month that Amber’s capital on FTX was not a big issue.
Amber Group Lays Off Staff, Halts Expansion Plans
Furthermore, Amber confirmed that it laid off some of its workers due to its exposure to the now-bankrupt FTX. “This was not an easy decision for us. However, we had to let go of some of our excellent staff,” Amber stated.
According to reports, the Temasek-backed firm cut off over 40% of its workers twice in 2022. The first layoff was in September, while the second occurred in December.
Due to its FTX exposure, Amber also had to pause its expansion plans in the US and Europe. Instead, Huang noted that the company would now focus on its Asian clients. Also, Huang revealed that the firm had to pause its ongoing metaverse initiative.
Despite cutting off workers and abandoning its expansion plans, Amber is still following its acquisition plans. On December 14th, Amber bought Sparrow Holdings, a Singapore-based firm, for an undisclosed amount.
Meanwhile, the Amber Group is not the only company affected by the FTX implosion. Other companies exposed to FTX are also on the brink of collapse.
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