Amber Group raises $300M in series C funding after FTX Blowout

Crypto trading firm Amber Group has raised $300 million in a series C funding round following the collapse of the crypto exchange FTX. The collapse of FTX had impacted some of the trading firm’s products and customers, increasing the need to raise additional capital quickly.

1) Today, we’re announcing that Amber Group has completed a $300M Series-C round, led by Fenbushi Capital US and joined by other crypto-native investors and family offices.

— Amber Group (@ambergroup_io) December 16, 2022

The round was led by Fenbushi Capital U.S., along with other Crypto investors and domestic family firms. Previously, Singapore’s investment fund Temasek, major crypto juggernaut Sequoia Capital China, and Coinbase Ventures had invested in Amber Group, according to reports.

According to Amber Group, while less than 10% of Amber Group’s capital was exposed to FTX’s implosion, certain assets would have been severely affected with “significant drawdowns as an aftermath of the FTX saga, that is, unless Amber Group could find a better way to protect customers.

5) While the vast majority of our clients and products remain intact, a few of our specific products would have experienced significant drawdowns as an aftermath of the FTX default, unless we could find ways to further protect those affected clients.

— Amber Group (@ambergroup_io) December 16, 2022

The firm said it decided to hold off on a series B strategy which was almost complete and would place its valuation at $3 Billion, in favor of a series C after the FTX collapse.

The trading firm had, according to reports, laid off 40% of its staff, which comprised 300 employees, restricted employee benefits, and terminated a $25 million sponsorship deal with Chelsea Football Club following the FTX collapse.

Speaking about the layoffs, Amber Group admitted that it had to “say goodbye” to “many” colleagues as it decided to scale down “mass consumer efforts and non-essential business lines.” The Series C investors “came on board” understanding that the firm would be “laser-focused.”

The crypto firm was reportedly spending though, amidst the layoffs, as it was reported to have bought a Singapore-based crypto exchange platform.

The bankruptcy of crypto exchange FTX has spread its nefarious tentacles across the industry, worsening an already bearish market. Various other companies, including majors like Bybit, have slashed employee counts amid a market downturn that lasted most of 2022.

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