Amber Group ditches expansion plans after denying insolvency: Report

Cryptocurrency trading steadfast Amber Group is putting its enlargement plans connected clasp contempt the FTX contagion having “no disruption” to its regular operations, according to a elder executive.

Amber has scrapped plans to grow successful Europe and the United States arsenic a effect of vulnerability to the now-defunct speech FTX and volition absorption connected organization clients successful Asia, according to managing spouse Annabelle Huang.

Huang besides said that Amber has been forced to deprioritize its caller metaverse task owed the FTX contagion, the Financial Times reported connected Dec. 9.

Apart from ditching its enlargement plans, the steadfast has reportedly been cutting its headcount recently. After reportedly laying disconnected up to 40% of unit successful September, the steadfast continued to laic disconnected employees again successful December.

According to Huang, Amber had astir 10% of its trading superior stuck connected FTX, which is not an contented for the company’s regular operations. In enactment with its plans to proceed servicing customers successful Asia, Amber has continued moving to rise caller backing and marque caller acquisitions.

The Temasek-backed institution has raised astir $50 cardinal successful backing from a caller sovereign fund, with the woody to beryllium announced successful January. Similar to Amber’s erstwhile $200 cardinal round, the caller backing values the steadfast astatine $3 billion. The raised magnitude is doubly arsenic debased arsenic what Amber primitively expected to secure.

Amber doesn’t see its ongoing rise to beryllium unsuccessful, Huang said. “We are not nether unit to rise capital,” she noted, adding that Amber volition besides denote a large acquisition of a licensed Singaporean concern successful December.

Related: Amber Group’s co-founder Tiantian Kullander passes distant astatine 30

The quality comes soon aft Huang denied allegations of Amber’s insolvency. The exec took to Twitter connected Dec. 6 to respond to allegations that Amber was “on the verge of bankruptcy,” stating:

“We proceed to run concern arsenic usual. If you person immoderate concerns, withdrawals are unfastened arsenic usual.”

The allegations were made by on-chain expert Lookonchain, who detected immoderate important discrepancies betwixt wallets allegedly owned by Amber and the reported funds and trading volumes.