Fenbushi’s new funding is expected to help Amber weather some of the “significant losses” following FTX’s default.
Amber has closed a new $300 million Series C funding round led by blockchain-focused venture capital firm Fenbushi Capital US, the company announced on Twitter Dec. 15.
The new round of funding comes as Amber decided to pause his previous Series B funding and instead proceed with Series C due to the collapse of FTX.
Prior to FTX’s failure, Amber was in the process of completing a Series B expansion that was valued at $3 billion. As previously reported, the company plans to raise $100 million in Series B funding with a goal of completing the round by January 2023. As of mid-December 2022, Amber had raised $50 million over the cycle.
Fenbushi’s recent funding is aimed at helping Amber weather some of the “significant declines” in Amber’s specific products following FTX’s failure, the company said.
“As such, we quickly adjusted our fundraising strategy,” Amber noted, adding that the company will also scale back its mass consumption efforts and “non-core businesses” to focus on core activities. Because of this, Amber has dropped plans for expansion in Europe and the United States, and dropped some Metaverse-related projects as well.
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Amber reiterated that the FTX contagion had no impact on the company’s day-to-day operations, although Amber held about 10% of its total trading equity in FTX at the time of the collapse.
Also Read: US Ex-FTX Chairman Reportedly Seeks $6M in Funding to Launch Crypto Startup
The company also mentioned that it had to lay off some employees due to the FTX contagion: “These decisions were not easy for us and unfortunately we had to say goodbye to many of our excellent colleagues.” Amber reportedly laid off more than 40% of its workforce in September and December 2022.
Despite scrapping expansion plans and laying off employees, Amber hasn’t given up on his acquisition ambitions. On Dec. 14, Amber acquired Singaporean crypto platform Sparrow Holdings for an undisclosed amount.
Cryptocurrency trading firm Amber Group is taking steps to mitigate the consequences of trading risk on bankrupt exchange FTX by proactively raising new funds.