Cryptocurrency trading firm Amber Group is putting its expansion plans on hold despite the FTX contagion having “no interruptions” to its day-to-day operations, according to a senior executive.

Amber has scrapped expansion plans in Europe and the United States as a result of exposure to the now-defunct FTX exchange and will focus on institutional clients in Asia, according to managing partner Annabelle Huang.

Huang also said that Amber was forced to de-prioritize her new metaverse project due to the FTX contagion, the Financial Times reported on December 9.

In addition to abandoning its expansion plans, the company has reportedly been cutting staff recently. After laying off up to 40% of the staff in September, the firm continued lay off employees again in December.

According to Huang, Amber had about 10% of her trading capital in FTX, which is not a problem for the company’s day-to-day operations. In line with its plans to continue serving clients in Asia, Amber has continued to work to raise new funds and make new acquisitions.

The Temasek-backed company has raised about $50 million in funding from a new sovereign wealth fund, with the deal set to be announced in January. Similar to Amber’s previous $200 million round, the new funding values ​​the company at $3 billion. The amount raised is double what Amber originally expected to get.

Amber doesn’t see her ongoing raise as unsuccessful, Huang said. “We are not under pressure to raise capital,” she noted, adding that Amber will also announce a major acquisition of a Singapore-licensed business in December.

Related: Amber Group Co-Founder Tiantian Kullander Passes Away at 30

The news comes shortly after Huang denied Amber’s insolvency allegations. The executive took to Twitter on December 6 to answer to allegations that Amber was “on the verge of bankruptcy”, stating:

“We continue to operate as usual. If you have any concerns, withdrawals are open as usual.”

The allegations were made by on-chain analyst Lookonchain, who detected some significant discrepancies between the wallets allegedly owned by Amber and the reported funds and trading volumes.





This post Amber Group Drops Expansion Plans After Denying Insolvency: Report

was published first on https://cointelegraph.com/news/amber-group-ditches-expansion-plans-after-denying-insolvency-report

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