On-chain data shows just $11 million in assets allegedly owned by the trading firm
FTX collapse contagion could still be spreading.
Lookonchain, an on-chain analyst, claims that the Amber Group, a crypto trading and asset management firm, appears to be on the brink of bankruptcy.
Lookonchain said six wallets allegedly owned by Amber have combined assets of just $9.46 million — Amber claims on its website to have over $5 billion “on its platform” and to be responsible for $1 trillion in trade volume.
Jason Choi, founder of Tangent, an angel investment collective, shared two additional wallets, bringing the value of Amber’s on-chain fortune to $11.1 million.
Annabelle Huang, a managing partner at Amber, denied the allegations. The company didn’t respond to an email asking for clarification on its financial position, but issued a statement that joined Huang’s.
mass layoffs
The Singapore-based company laid off hundreds of employees in December after laying off 30% to 40% of its workforce in September, according to Colin Wu, a reporter who focuses on crypto developments in Asia.
FTX’s spectacular implosion has left much of the crypto community on edge — a spate of bankruptcies and claims that trading firms like Orthogonal Trading are essentially insolvent have frequently sent shockwaves through crypto since the exchange run by Sam Bankman Fried fell apart.
Orthogonal Trade Misses $10M Loan Payment
Maple Finance and M11 Credit allege that the company’s financial position has been misrepresented
Now, big players like Amber have become part of the rumor mill as the crypto community scrambles to uncover which companies may have been wiped out as a result of FTX’s bankruptcy.
Founded in 2018, Amber offers a wide range of services including market making and secured lending — it also participates in a number of DeFi protocols, according to the company’s website.
Amber raised $200 million in a funding round in March that valued the company at $3 billion. Temasek, Singapore’s $300 billion sovereign wealth fund, led the round.
The company had a turbulent few weeks – its co-founder Tiantian Kullander died unexpectedly in his sleep on November 23.
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