Amber Group Expands Amid Challenges Following FTX Collapse

Cryptocurrency trading firm Amber Group, which had approximately 10% of its trading capital stuck on FTX at the time of the exchange’s collapse, has announced its acquisition of Singaporean cryptocurrency platform Sparrow Holdings on December 14.

Sparrow Holdings and Its Compliance Efforts

Sparrow Holdings offers a range of digital asset products and solutions, including a successful acquisition of a payments license from the Monetary Authority of Singapore in August. This license allows it to provide Digital Payment Token services in Singapore under the Payment Services Act.

Founded in 2018, Sparrow works with financial institutions and family offices to design tailored digital asset solutions aimed at achieving growth objectives while ensuring compliance with regulatory requirements.

Timing and Context of the Acquisition

The announcement of the acquisition comes at a particularly sensitive time for Amber Group. On November 25, Cointelegraph reported that co-founder Tiantian Kullander (TT) passed away unexpectedly in his sleep at the age of 30 on November 23.

In light of this loss, Amber Group had already paused its expansion plans following the repercussions from the collapse of FTX, which triggered widespread concern across the crypto market. According to managing partner Annabelle Huang, the firm has also deprioritized its new metaverse project because of the contagion effects from FTX.

Workforce Adjustments and Future Outlook

Amber Group has reportedly cut down its workforce significantly, laying off up to 40% of its staff in September, with further rounds of layoffs occurring in December. Despite these challenges, the acquisition of Sparrow Holdings signifies Amber’s commitment to enhancing its offerings and maintaining its position in the market.

As Amber continues to navigate the turbulent landscape of the cryptocurrency industry, its focus will likely remain on leveraging partnerships and innovative solutions to ensure long-term resilience and growth.