Amber Group Raises $300M in Series C Funding Amid FTX Fallout

Amber Group has secured $300 million in a new Series C funding round led by blockchain-focused venture capital firm Fenbushi Capital US, as announced via Twitter on December 15. This funding comes as Amber pivots from its previous Series B funding efforts following the collapse of the FTX exchange.

Shifting Focus After FTX Collapse

Prior to the FTX crisis, Amber was in the process of extending its Series B fundraising round, targeting a total of $100 million at a valuation of $3 billion. At the time of the announcement, Amber had raised $50 million but decided to halt further efforts in light of the negative consequences arising from the collapse of FTX. The firm stated:

“That’s why we reacted quickly to adjust our fundraising strategy.”

Strategic Adjustments

The new investment will help Amber address significant drawdowns experienced across its products as the market navigates the aftermath of FTX’s fall. The firm is also scaling back its mass consumer efforts and non-essential business lines, notably scrapping plans to expand to Europe and the United States, along with abandoning certain metaverse-related initiatives.

Despite facing challenges, Amber Group reiterated that it remains committed to maintaining its daily operations, noting that at the time of FTX’s collapse, about 10% of its total trading capital was held on the platform.

Employee Layoffs and Future Plans

Amber Group has made the tough decision to lay off portions of its workforce as a direct response to the fallout from FTX. The firm acknowledged these difficult choices, stating: “These have not been easy decisions, and we, unfortunately, have had to say goodbye to many of our excellent colleagues.” Reports indicate that Amber has laid off more than 40% of its staff in September and December 2022.

Acquisition Efforts Persist

Amid these setbacks, Amber Group continues to pursue its acquisition ambitions. On December 14, the firm acquired Singaporean crypto platform Sparrow Holdings for an undisclosed amount, reinforcing its intention to expand its operational capabilities even during a turbulent market.