Temasek-backed crypto firm Amber Group making 'dynamic headcount adjustments' across global offices

SINGAPORE: Temasek-backed crypto firm Amber Group has "made adjustments dynamically" to its headcount and team compositions across global offices, with its Singapore headquarters "open and operating as usual".

In response to CNA's queries, Amber Group said on Monday (Dec 12) that the adjustments - part of the firm's quarterly business planning - were made based on business needs and other operational considerations such as cost and efficiency.

Bloomberg reported that Amber Group will reduce its workforce from the current 700 to less than 400.

Their operations and business are not affected, said Amber Group, adding that employees affected by the adjustments will be offered severance pay.

The crypto firm also addressed reports surrounding delayed severance payments, attributing the holdup to a "transaction delay due to the restriction in the foreign exchange quota".

"So as we weather through the market cycle, we are constantly adjusting and pivoting business strategies, and making correspondent headcount adjustments across our global offices in light of the current market conditions to remain resilient and competitive," said Amber Group.

According to a report by the Financial Times last week, the crypto firm, founded by former Morgan Stanley traders, only raised half of a planned US$100 million funding round, which raised concerns that it might have been affected by the collapse of FTX.

FTX, formerly one of the world's largest crypto exchanges, filed for bankruptcy on Nov 11 and its founder, Sam Bankman-Fried, resigned as chief executive.

A partnership between football club Chelsea and Amber Group purportedly worth £20 million (US$25 million) a year will also be terminated, according to Bloomberg. The partnership was first announced in May 2022.

The Financial Times also reported that Amber Group's troubles surfaced following the death of its 30-year-old co-founder Tiantian Kullander on Nov 23.

But Amber Group told CNA that the fall of FTX "does not pose a threat to our business operations or liquidity", adding that it has "no exposure" to FTX's trading firm Alameda Research or its main token, $FTT.

"Though similar to most trading firms, we were a trading participant on FTX, we have strict exposure limits on individual trading venues and significantly reduced our exposure before the FTX news," the firm added.