Amber Group reportedly raised just half of its $100 million funding round and halted its global expansion efforts due to the ongoing bear market.
The company recently laid off a portion of its staff after previously admitting it has been an “active trading participant” on the bankrupt crypto exchange FTX.
Amber Group raised hopes at the beginning of 2022 that it will manage to boost its valuation nearly three times, reaching $10 billion. The shaken condition of the cryptocurrency market, though, foiled those intentions.
According to a Financial Times coverage, Amber Group – which is backed by Singapore’s investment company Temasek – secured a $50 million fundraiser, which is half of the initially planned amount. Despite the reduced funds, Annabelle Huang – Managing Partner at the firm – did not classify the effort as “unsuccessful.”
“We are not under pressure to raise capital,” she added.
Amber Group’s issues seem to have escalated after the collapse of FTX. The company dismissed the rumors that it had some exposure to the bankrupt entity or Alameda Research. However, it has been an “active trading participant” on FTX.
The organization trimmed the size of its team by 5-10% in September, citing current “market conditions,” and laid off more employees earlier this month.
A curious and yet tragic event was the unexpected death of Tiantian Kullander – Co-Founder of Amber Group. The 30-year-old man passed away in his sleep at the end of November, while sources failed to provide information on whether he suffered from any illness.
“Lost a dear friend who has changed my life, among many others, in ways he didn’t realize,” Huang stated.