Singapore-Based Crypto Unicorn Amber Group Is Shrinking Hong Kong Workforce, SCMP Reports

Singapore-based digital asset manager Amber Group has halved its staff in Hong Kong to 40, cutting jobs in risk management, audit and compliance, in a bid to weather a price crash of cryptocurrency and a cascade of industry bankruptcies, according to a South China Morning Post report on Wednesday citing a person familiar with the developments.

See related article: Amber Group Launches CreatorFi NFT Initiative to Bridge Traditional Crypto Worlds

Fast facts

  • The SCMP report said Amber had reduced its compliance staff in Hong Kong to five from 20 people and laid off its entire audit team. He did not mention Singapore headquarters operations or the total number of Amber employees.

  • Payments to many of the company’s third-party vendors have been delayed, in some cases for up to six months, the report said, citing a person who declined to be identified because he is not authorized to speak to the media.

  • The report said Amber, which was founded in 2017 in Hong Kong and later moved its headquarters to Singapore, told SCMP on January 13 that it had 100 employees in Hong Kong and was “preparing to an extremely conservative position”. .”

  • Amber, whose inventors include Sequoia Capital China and Singapore’s Temasek Holdings, had moved its local offices from Hong Kong’s central business district to low-cost facilities in Causeway Bay to cut costs, the report said.

  • Amber shut down her WhaleFin crypto exchange in December and canceled the £20 million ($25 million) a year advertising deal with the English Premier League football team Chelsea FC for the 2022-23 season, according to a previous Bloomberg report.

  • Amber became a unicorn, a private startup with a valuation of over US$1 billion, in June 2021 after closing a US$100 million Series B fundraising and declaring plans to go public a few years from now.

  • Following the failure of Bahamas-based cryptocurrency exchange FTX in November, the BlockFi Inc. exchange declared bankruptcyand around the same time the Hong Kong-based stock exchange AAX closes customer services with reports it is unlikely to reopen. Thursday morning was reported that US-based crypto lender Genesis is preparing to file for bankruptcy.

  • Last week, the largest US-based crypto exchange Coinbase Global Inc., reduce its remaining workforce additional 20%.

  • The total crypto market cap fell 56% from a year ago to $966 billion.

See related article: Hong Kong arrests two for alleged involvement in AAX digital asset fraud

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