Distressed Crypto Platform Amber Group Secures a $300 Million Fundraiser
Amber Group – a cryptocurrency platform backed by Singapore’s investment company Temasek – completed a $300 million funding round. The money will be distributed to clients affected by the FTX collapse.
The company, which had to cope with severe issues due to the ongoing bear market, recently acquired the Singaporean exchange – Sparrow Holdings.
Trying to Reimburse Victims
As announced on Twitter, the Series C fundraiser was led by Fenbushi Capital US. Amber Group said the move shows “investor confidence” in the firm’s operations and commitment to cooperate with the platform despite its recent issues.
“As part of that future, it’s important for us to adapt and protect our clients in this challenging market environment,” the platform stated.
As previously revealed, Amber Group did not have exposure to FTX or Alameda Research. On the other hand, it has been an “active trading participant” in the bankrupt trading venue.
The funds from the latest funding round will reach those clients who lost money on the platform’s products due to the FTX meltdown.
Amber Group aimed to secure another $100 million fundraiser earlier this month but completed only half of the planned amount, citing the negative effects of the crypto winter.
While the organization had over 1,000 employees a few months ago, it had to trim the size of its team as a cost-cutting measure. It laid off around 10% of its headcount in September and continued the dismissal spree in December.
In addition, Amber Group had to enforce salary reductions and terminated some of its partnerships, such as the one with the popular British soccer team – Chelsea FC. CEO Michael Wu further hinted that the collaboration with Atletico de Madrid might also cease as the entity is “reducing all marketing efforts.”
The unexpected death of Amber Group’s Co-Founder – Tiantian Kullander – was another shocking event for the organization. The Hong Kong businessman, known as “TT,” mysteriously passed away in his sleep, aged just 30.
The Latest Acquisition
Amber Group recently purchased the Singaporean cryptocurrency exchange Sparrow Holdings.
The latter obtained a payment institutions license from the Monetary Authority of Singapore in August and offers a variety of digital asset products and solutions to customers.
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I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.