How Amber Group Raised $300M To Recover From FTX Contagion

Amber group, has completed a new $300 million Series C funding round, led by blockchain-focused venture capital company Fenbushi Capital US, the firm announced on Twitter on Dec. 15.

iexclusivenews reports that due to the failure of FTX. Amber has decided to pause its previous Series B funding and instead proceed with Series C.

Amber was in the process of completing an extension of its Series B at a $3 billion valuation prior to the failure of FTX.

As previously reported, the company intended to raise $100 million as part of the Series B funding round. With the goal of completing the round by January 2023. Amber had raised $50 million in the round as of mid-December 2022.

According to the firm, the latest funding from Fenbushi aims to assist Amber in addressing some of the “significant drawdowns” of Amber’s specific products as a result of the FTX default.

“That’s why we reacted quickly to adjust our fundraising strategy,” Amber explained. Adding that the company will also scale back its mass consumer efforts and “non-essential business lines” in order to focus on core businesses.

As a result, Amber has canceled plans to expand to Europe and the United States, as well as a number of metaverse-related projects.

Despite Amber having about 10% of its total trading capital on FTX at the time of its collapse.

Amber reiterated that the FTX contagion had no impact on the company’s daily operations.

The company also stated that due to the FTX contagion, it had to lay off some employees:

“These have not been easy decisions, and we, unfortunately, have had to say goodbye to many of our excellent colleagues.”

What You Should Know

According to reports, Amber will lay off more than 40% of its workforce between September and December 2022.

Despite ditching expansion plans and laying off staff, Amber has not given up on its acquisition ambitions.

However, iexclusivenews Nigeria reports that Amber paid an undisclosed sum for the Singaporean crypto platform Sparrow Holdings on December 14.

Amber Group, a cryptocurrency trading firm, is proactively raising new funding to mitigate the consequences of trading exposure to the bankrupt exchange FTX.