Exclusive | Cryptocurrency firm Amber scrambles to cut costs as industry battles shock waves created by FTX collapse, source says
- The crypto trading firm operates market making and asset management services, and a retail-facing exchange named WhaleFin
- Amber says it is ‘anticipating and preparing itself for an extremely conservative position, so that it can go the long mile’
Crypto unicorn Amber Group is slashing costs and jobs across the board, halving its total staff size in Hong Kong to 40 by cutting support jobs including IT, risk management, audit and compliance, a source said, as the firm scrambles to survive a cryptocurrency market meltdown.
Over the past few months Amber, which started in Hong Kong and is backed by major investors including Sequoia Capital China and Temasek Holdings, has culled compliance from more than 20 people to fewer than 5 globally, according to a person familiar with the matter. The person, who asked not to be identified as they are not authorised to talk with the media, added that the firm has also made its entire internal audit team redundant.
The person said that Amber has also moved its Hong Kong office from the city’s Central business district to a cheaper office in Causeway Bay, and that it has delayed payment of bills to third-party vendors, including those owed to technology services, recruitment agencies and consultants, some of which are in arrears for up to six months.
Amber said that it is “anticipating and preparing itself for an extremely conservative position, so that it can go the long mile, even if it means having to go back to core business fundamentals during this period,” according to an January 13 response to a query by the Post. It added that the firm’s Hong Kong office had “more than 100 employees in headcount” and that it was “business as usual”.
The crypto trading firm, which operates market making and asset management services, and a retail-facing exchange named WhaleFin, achieved a valuation of US$3 billion in February 2022 after a US$200 million funding round led by Singapore’s state-owned Temasek.
But signs of trouble have emerged at the company as it scrambles to reduce costs amid crypto market turmoil set off by the collapse of multiple platforms this year, including stablecoins Terra Luna in May and crypto exchange FTX in November.
