Amber Group raises $300M to recover from FTX contagion

Amber has accomplished a brand new $300 million Series C funding spherical, led by blockchain-focused enterprise capital firm Fenbushi Capital US, the agency announced on Twitter on Dec. 15.

The new funding spherical comes as Amber has determined to pause its earlier Series B funding and proceed with Series C as a substitute due to FTX collapse.

Prior to the failure of FTX, Amber was in means of finishing an extension of its Series B at a $3 billion valuation. As beforehand reported, the corporate was planning to increase $100 million as a part of the Series B funding, focusing on to full the spherical by January 2023. As of mid-December 2022, Amber raised $50 million within the spherical.

The newest funding from Fenbushi goals to assist Amber tackle a number of the “vital drawdowns” of Amber’s particular merchandise as an aftermath of the FTX default, the agency mentioned.

“That’s why we reacted shortly to regulate our fundraising technique,” Amber famous, including that the agency might be aso cutting down their mass client efforts and “non-essential enterprise traces” to deal with core companies. As such, Amber has scrapped plans to increase to Europe and the United States, additionally ditching some metaverse-related initiatives.

Amber reiterated that the FTX contagion has not impacted the corporate’s each day operations regardless of Amber having about 10% of its complete buying and selling capital on FTX on the time of its collapse.

Related: FTX US ex-president reportedly seeks $6M funding to launch crypto startup

The firm additionally talked about that it had to lay off some staff due to the FTX contagion: “These haven’t been simple selections, and we, sadly, have had to say goodbye to lots of our wonderful colleagues.” According to some stories, Amber laid off greater than 40% of its workers in September and December 2022.

Despite ditching growth plans and shedding workers, Amber has not given up on its acquisition ambitions. On Dec. 14, Amber acquired the Singaporean crypto platform Sparrow Holdings for an undisclosed quantity.

Cryptocurrency buying and selling agency Amber Group is taking motion to mitigate the implications of buying and selling publicity to the bankrupt trade FTX by proactively elevating new funding.