Sunday, July 21, 2024

Amber Group Struggles to Survive Cryptocurrency Market Meltdown.

Chinese crypto trading firm Amber Group is trying to mitigate the cryptocurrency market meltdown by slashing costs and jobs across the board. It has cut off half the total staff size in Hong Kong by laying off employees in risk management, IT, audit, and compliance.

An insider said Amber Group, headquartered in Singapore, has culled compliance from more than 20 people to fewer than five globally. The crypto unicorn also had to let go of its entire internal audit team. Amber Group was established in Hong Kong with support from Temasek Holdings and Sequoia Capital China among others. Because of the ongoing crypto slump, it has had its Hong Kong office from the city’s Central Business District to a cheaper office in Causeway Bay. The company canceled a sponsorship deal with Chelsea FC.

Moreover, Amber Group has delayed payment of bills to third-party vendors – having arrears of up to six months. The company highlighted that it is preparing for an extremely conservative position. However, it said the Hong Kong office had more than 100 employees and it was business as usual. Amber Group operates market-making and asset management services. It has a retail-facing exchange called WhaleFin. The crypto company achieved a valuation of $3 billion in February 2022 after a $200 million funding round that was led by Temasek.

But now, Amber Group is struggling to reduce costs.

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