Cointime

Download App
iOS & Android

FTX’s Collapse Spurs More Trouble at Amber Group As Layoff Continues

Cointime Official

Amber Group is reportedly layoff its employees again and asking the remaining staff in China to work from their homes.

Prominent digital asset trading platform Amber Group is reportedly laying off hundreds of its employees again, according to WuBlockchain.

Amber Group Asks Chinese Employees to Work From Home

From posting a +25% YoY revenue increase in the first half of 2022, Amber Group went on to dismiss about 10% of its workforce in September, citing regular business adjustments and the impact of the cryptocurrency winter following Luna/3AC/lending firm collapses. With the FTX crash, the situation seems quite dire.

In addition to laying off hundreds of its remaining staff, Amber Group appears to be closing down its Chinese office as it asked employees to work from their respective homes, which is probably due to the recent COVID-19 lockdown order in China.

On November 9, Amber Group admitted exposure to FTX, saying it was among the active trading participants on the exchange before the collapse. The company claimed that 10% of its assets had been trapped on the bankrupt exchange, but it doesn’t threaten business operations or liquidity.

“We have no exposure to Alameda or $FTT. But similar to most trading firms, we have been an active trading participant on FTX. […] However, with strict exposure limits on individual trading venues, this represents <10% of our total trading capital,” Amber Group said on Twitter.

Amber Group Recently Lost Its Co-Founder

Before FTX’s collapse, Amber Group had attempted to raise about $100 million in fresh funding at a $3 billion valuation. According to people familiar with the matter, the company had planned to raise a much larger fund at a $10 billion valuation in May but backtracked due to the cryptocurrency bear market.

The company had to deal with another situation: the mysterious death of the co-founder Tiantian Kullander in late November. Kullander reportedly died at age 30 while sleeping.

(By Ibiam Wayas)

FTX
Comments

All Comments

Recommended for you

  • JPMorgan Chase issues Galaxy short-term bonds on Solana network

     JPMorgan arranged and created, distributed, and settled a short-term bond on the Solana blockchain for Galaxy Digital Holdings LP, as part of efforts to enhance financial market efficiency using underlying cryptocurrency technology.

  • HSBC expects the Federal Reserve to refrain from cutting interest rates for the next two years.

    HSBC Securities predicts the Federal Reserve will maintain interest rates stable at the 3.5%-3.75% range set on Wednesday for the next two years. Previously, Federal Reserve policymakers lowered rates by 25 basis points with a split vote. The institution's U.S. economist Ryan Wang pointed out in a report on December 10 that Federal Reserve Chairman Jerome Powell was "open to the question of whether and when to further cut rates at next year's FOMC press conference." "We believe the FOMC will keep the federal funds rate target range unchanged at 3.50%-3.75% throughout 2026 and 2027, but as the economy evolves, as in the past, it is always necessary to pay close attention to the significant two-way risks facing this outlook."

  • Institution: US AI companies face power pressures that will drive up operating costs.

    Benjamin Melman, Chief Investment Officer of asset management company Edmond de Rothschild, pointed out that American artificial intelligence companies are facing intense competition in terms of electricity costs. He stated that the current power capacity in the U.S. is insufficient to meet the growing demand of AI companies, and electricity prices are significantly higher compared to other countries. "The U.S. faces intense competition in electricity costs, which will drive up the operating costs of AI."

  • Institutions: The US dollar may face further pressure next year, with AI bubble and interest rate outlook being key risks.

    Benjamin Melman, CEO of asset management company Edmond de Rothschild, stated that the US dollar may face downside risks again next year. "If the market worries again about US interest rates or if the artificial intelligence bubble suddenly bursts, the US dollar will be at risk." With the Federal Reserve cutting interest rates, the US dollar has continued to weaken this year. The US Dollar Index (DXY) recently fell 0.05% to 98.59. In mid-September, the index hit a three-and-a-half-year low of 96.218. 

  • The U.S. spot Ethereum ETF saw net inflows of $56.48 million yesterday.

    according to Trader T monitoring, the US spot Ethereum ETF had a net inflow of 56.48 million USD yesterday.

  • Data: The global market capitalization of stablecoins reached $310 billion, a record high.

     according to Token Terminal data, the global stablecoin market value has reached 310 billion USD, setting a new record high.

  • Zuckerberg instructs Meta to abandon open-source artificial intelligence

    market news: Meta Platforms CEO Zuckerberg has instructed Meta to abandon open-source artificial intelligence. Insiders say Meta used Alibaba's Tongyi large model to fine-tune the new AI model. Alibaba (BABA.N) rose more than 4% pre-market, Meta Platforms (META.O) fell more than 1%.

  • He Yi: BNB will be airdropped to users who have suffered losses due to their WeChat accounts being hacked.

     Binance co-founder Yi He's WeChat account was recently hacked, causing some users who trusted her friend circle information to purchase a certain meme coin and suffer losses. Yi He has announced that she will personally allocate a certain amount of BNB to compensate users who traded this meme coin through Binance non-custodial wallets and the Alpha platform during the account hacking period and incurred losses. The airdrop will be completed within 24 hours.

  • Fidelity: Buyers purchased approximately 430,000 Bitcoins around $85,500, a price level that may be a key support level.

     Fidelity Digital Assets, a subsidiary of Fidelity, posted on the X platform that with the shift in macro expectations, Bitcoin has regained upward momentum, currently fluctuating around the $90,000 range. Trading data shows that the buying volume of Bitcoin near $85,500 (about 32% below the historical high) has reached approximately 430,000 coins, indicating that this price level will be an important support level. The market volatility has now stabilized, and Fidelity will closely monitor the market's reaction to today's Federal Reserve meeting.

  • Strategy's stock trading volume has now surpassed that of e-commerce giant Amazon.

    according to market sources: the daily trading volume of Bitcoin treasury company Strategy's stock ($MSTR) has now exceeded that of e-commerce giant Amazon.