Crypto Company Amber Enhances $300 Million to Address FTX Breach

When Sam Bankman-FTX Fried's exchange went up in flames, Amber, a prominent cryptocurrency trading and lending platform, reversed course from its original goal to fund $100 million at a $3 billion value in several installments, according to Wu.

The current Series C round is being managed by venture capital company Fenbushi Capital US, Wu said, stressing that the value is smaller than the $3 billion obtained in February. “We made a swift decision to effectively pause the previous round,” he added.

An email asking for comment was not immediately answered by Fenbushi Capital.

Just under 10% of Singapore-based Amber's total trading capital was on FTX at the time of the exchange's insolvency. Since then, Wu claims, as Amber's total trading volume has decreased, that fraction has increased.

According to Wu, the company is slashing expenses as it returns to its roots of solely serving institutional and wealthy clientele. According to him, Amber would employ no more than 300 workers, which had been the company's number at the end of 2020 and the beginning of 2021.

Crypto platforms are attempting to allay client concerns as FTX's contagious effects spread. Subsequently, businesses like BlockFi Inc., which is currently insolvent, Blockchain.com, and Blockstream sought to raise money at lower values, indicating the challenging market environment and the declining interest of venture investors.

Long-lasting layoffs, suspension of bonuses, and compensation cutbacks among management have been some of Amber's problems. Additionally, the business stopped serving retail customers and canceled a sponsorship agreement with Chelsea FC.

Wu declined to answer questions particularly on the connection between Amber and Atletico de Madrid, where the firm's WhaleFin trading platform's logo can be seen on the front of the soccer team's jersey, but added that Amber is “cutting all marketing activities.”

The large percentage of the $300 million funding, according to him, will go to the firm's institutional and high-net-worth customers who invested in FTX-using products, such as those that sought to take advantage of trading opportunities between various exchanges. He added that the company is still in operation.

Long-Term Outlook

Thus according to Wu, Amber reached its pinnacle at the conclusion of the 2nd period and the beginning of the third period of this year with more than 1,000 employees. He declared himself optimistic about Amber's long-term potential.

Sequoia China and Temasek Holdings Pte are two of Amber's financiers. A group of entrepreneurs, including former dealers from Morgan Stanley, started it in 2018. Tiantian Kullander, one of its founders, went tragically suddenly in November at the age of 30.

Because of a rapidly tighter monetary stance and a string of explosions, the cryptocurrencies are suffering severe losses. The top 100 digital assets as measured by a gauge have fallen by more than 60% so far this year.

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