Several high-profile employees have resigned from satellite hubs of cryptocurrency firm Amber Group. This development comes after the crypto firm went through several rounds of layoffs. In addition, Amber is changing its priorities regarding global marketing and sponsorships. However, the firm is trying to raise more funds.
Leaflet in crypto money firm
Amber Group is backing out of its plans to expand in the US and Europe as it pulls back to survive the crypto winter. Angie Beehler, head of US corporate sales; Cactus Raazi, CEO of USA and co-president of America; Dimitrios Kavvathas, CEO of MENA; Switzerland managing director Francesco Adiliberti; and Sophia Shluger, managing director of Europe, are among the executives leaving. Olaf Ammermann also stepped down as director of Amber’s UK subsidiary in July. This coincided with the termination of his firm’s consulting contract with Amber.
Amber confirmed the departures in a statement. Meanwhile, all the executives have joined the firm within the past year and a half. In a few cases the firm has touted as high-profile designations. Kavvathas said he will continue his MENA business as a consultant.
Founded in 2017, Amber offers a wide range of services to institutional clients, from trading and liquidity services to yield products. It has recently dived into the consumer segment with its wealth management platform WhaleFin. Although financial results have not been audited, the firm announced a 25% revenue increase in the first half of this year compared to the previous year. Amber’s managing partner, Annabelle Huang, released the following statement:
Amber will continue to serve our global HNW and corporate clients. Since our home base is in Asia and this is where we have the most resources, it has always been our main market as well.
Single digit number of staff
The criticism in the personnel is not limited to these high-profile employees. A source familiar with the company’s operations announced that executives in Singapore will close some international businesses in June. After that, the headcount of Amber’s US and European offices is now in single digits. Annabelle Huang said:
These priority-free regions have seen significant staff reductions. Staff numbers in Europe have indeed dropped from a peak of 30-40 to single digits. In anticipation of worsening investment sentiment, we have started downscaling in non-core regions, particularly on the retail client side, since the third quarter. However, the FTX thing was unexpected. That’s why we’ve decided to more aggressively scale back these nonprofit efforts.
Are sports sponsorships ending?
The company is also changing its priorities regarding global marketing and sponsorships. Amber had agreed to make sponsorship deals with football teams Atletico Madrid and Chelsea, which are estimated to be worth around $44 million and $25 million annually, respectively. A source close to the company said the company is trying to renegotiate both commitments. Bloomberg reported on Friday that Amber is seeking to withdraw from her Chelsea deal.
Layoffs at cryptocurrency company
In September of this year, Amber reduced the number of its employees by 5% to 10% and went to the personnel criticism. Huang explained that these cuts are part of the company’s standard quarterly business plan. “We wanted to remain vigilant and refocus on key areas of core business,” Huang said. So that unfortunately means making some tough decisions, and that’s what we did,” he said.
Bloomberg said this week that the layoffs continue despite expectations that they will be completed by November. “We make adjustments to headcount and team compositions based on business needs and other operational considerations. However, we usually analyze our internal structure and team structures quarterly,” he said. Huang said Amber’s headcount reached nearly 1,100 at its peak. That number has now dropped to around 400, according to a Bloomberg report Friday.
‘Business as usual’
Earlier this week, Amber reassured customers that ‘business is as usual’ after reports of further layoffs and paused withdrawals on some of its platforms. On-chain detectives noted that the firm only has $11 million in assets in six wallets. So he claimed that the company may be on the verge of bankruptcy. Huang and the firm vehemently denied this.
The company said last month that it has no influence on FTX’s FTT token or its sister firm Alameda Research. However, he was an active trading participant in the exchange. It also saw up to 10% of trading capital tied to FTX when it blocked withdrawals last month. “Based on market cycles, we must continually adjust and change our business strategies, product offerings, and ultimately our internal teams and functions,” Amber said in a statement.
Cryptocurrency firm seeks new financing
cryptocoin.comAs you’ve been following on, Amber was in the fundraising process when the FTX news hit. Accordingly, he was after raising $100 million at a fixed valuation of $3 billion. The Financial Times reported on Friday that Amber managed to raise $50 million out of $100 million in her fundraising round.
“Our business plans are always changing, including the market environment and fundraising strategies,” Huang said. Amber denied that the $50 million fund was an emergency fundraiser. He also said that the funds came from a new investor.
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