The Financial Times reported on Dec. 9 that cryptocurrency trading firm Amber Group is putting its expansion plans on hold despite the FTX infection “not disrupting” its day-to-day operations.

Amber has scrapped plans to expand into Europe and the US 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 had to de-prioritize her new metaverse project due to the FTX infection.

Apart from abandoning expansion plans, the company is said to have cut its staff. After reports of layoffs of up to 40% of its staff in September, the company went on to lay off staff again in December.

According to Huang, Amber had about 10% of its trading capital stuck 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 on raising new funding and making new acquisitions.

The Temasek-backed company has raised about $50 million in funding from a new sovereign fund, with the deal 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 half of what Amber originally expected to secure.

Huang said that Amber does not consider the continuous increase in her lift to be unsuccessful. “We are not under pressure to raise capital,” she noted, adding that she would also announce a major acquisition of a licensed Singaporean company this month.

Related topics: Tiantian Colander, co-founder of Amber Group, has passed away at the age of 30

The news comes shortly after Huang denied Amber’s bankruptcy allegations. The executive took to Twitter on Dec. 6 to respond to allegations that Amber was “near bankruptcy,” saying:

“We are continuing with business as usual. If you have any concerns, withdrawals are open as normal.”
The allegations were made by on-chain analyst Lookonchain, which discovered some significant discrepancies between wallets allegedly owned by Amber and the funds and their reported trading volumes.