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Crypto firm Amber raises $300m to protect against FTX fallout

Cryptocurrency trading form Amber Group has raised $300 million in a Series C funding round, shut down its retail operations, begun laying off staff, and ended a sponsorship deal with Chelsea Football Club as it seeks to weather the fallout of FTX's collapse.

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Crypto firm Amber raises $300m to protect against FTX fallout

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Fenbushi Capital US led the Series C, which Amber says it embarked on after FTX's bankruptcy.

Previously, the firm had been working to close a $100 million Series B+ extension round at a $3 billion valuation "in preparation for a potentially prolonged crypto winter".

However, it was forced to jump straight to the Series C at a lower, but undisclosed, valuation.

In a series of tweets, Amber says that less than 10% of its total trading capital was with FTX at the time of the exchange's collapse "but we did have to rebalance some positions".

The firm is now narrowing its focus to its core business of institutional and wealthy clients and winding down its mass consumer efforts.

CEO Michael Wu has told Bloomberg that the firm is also shrinking its headcount to early 2021 levels of 300 people - from a high of 1000 at the end of the second quarter - and cutting marketing spend, including a deal with Chelsea FC.

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