Crypto trader Amber raises $300 million as it seeks protection for FTX-affected clients • ExamPaper

Amber Group, a crypto trading firm backed by Sequoia and Temasek, has completed a hefty $300 million Series C funding round as the collapse of FTX rocks the crypto world.

This is reported by the Singapore-based company announced on Twitter Friday morning, following on the heels of a Bloomberg report claiming the crypto trader has dumped a sponsorship deal with Chelsea FC and is cutting 40% of its staff amid market turmoil.

Like other crypto trading companies, Amber was exposed to the FTX implosion. Less than 10% of total trading capital was with FTX at the time of the collapse, the company said“But we had to rebalance some positions.”

That rebalancing strategy has come to light when Fenbushi Capital US, the lead investor in Amber’s latest round, pours money into the crypto market maker to keep its business afloat. Fenbushi Capital also backed Amber’s $100 million Series B round in June 2021.

“While the vast majority of our customers and products remain intact, a few of our specific products would have suffered significant losses due to the FTX standard unless we could find ways to further protect those affected customers,” Amber said in a tweet . .

“That’s why we reacted quickly to adjust our fundraising strategy. The Series C investors came on board with the understanding that we will be fully focused on providing the best services to our client base of institutional and high net worth investors.”

The Series C funding was joined by other crypto-native investors and family offices. Amber was last valued at $3 billion in the $200 million Series B renewal round in February. Bloomberg reported Friday that the company’s valuation has fallen below $3 billion.

Amber, which provides liquidity and market making services primarily in Asia, had cumulatively traded $1 trillion worth of cryptocurrencies as of February with more than $5 billion in assets under management.

ExamPaper has reached out to Amber regarding the extent of the recent layoff. Sources told us the trading platform, which provides a mix of institutional and retail services, is cutting a “significant” portion of its workforce.

Amber hinted in a tweet that the layoff would indeed be substantial as it will “reduce our efforts for mass consumers and non-essential business areas, in an effort to focus on our core business and customers. These have not been easy decisions and we have unfortunately had to say goodbye to many of our excellent colleagues.”

Update from Amber’s comment: “Unfortunately, difficult but decisive adjustments were required, including a realignment of the organization estimated at 300 employees, as well as the prudent decision to reduce executive salaries, organization-wide annual bonuses and marketing expenses. This is so that we remain resilient in the current market environment.”

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