Ben Strack

Partnerships between sports brands and crypto companies — a dime a dozen through the bull market — are likely to slow and shift after a whirlwind 2022, according to industry participants.



The FTX moniker was <a href="https://blockworks.co/news/golden-state-warriors-and-miami-heat-axe-ftx-deals">stripped</a> from the Miami Heat’s arena last month. The MLB cut ties with the collapsed crypto exchange. And Voyager Digital’s <a href="https://blockworks.co/news/voyager-digital-partners-with-dallas-mavericks">deal</a> with the NBA’s Dallas Mavericks ran into a wrinkle: the crypto company’s bankruptcy.&nbsp;



Though a handful of the industry’s firms are still interested in doing deals, despite dropping marketing budgets, the structures and terms of the arrangements appear poised to morph. Backs are now on the lookout for more crypto crashes to potentially pop up.



<h3 class="wp-block-heading">Sponsorships drop off in 2022’s second half&nbsp;</h3>



Circa 2021, crypto brands began outbidding prominent existing sponsors beset by the pandemic’s economic fallout, according to Conrad Wiacek, head of sport analysis and consulting at GlobalData.&nbsp;



Wiacek pointed to FTX <a href="https://blockworks.co/news/ftx-inks-135m-sponsorship-deal-for-miami-heat-arena">inking</a> a 19-year, $135 million deal in March 2021 for naming rights to the Miami Heat’s arena, previously the domain of American Airlines.&nbsp;



“Where traditional sponsors might have kept the sponsorship going if they could keep a flat rate, crypto companies were throwing money around, basically,” he told Blockworks.



Crypto collectively shelled out cash for those deals during the first half of 2022 — good for an estimated $515 million, according to GlobalData. The sports industry wasn’t far behind at $444 million, while alcohol brands and insurers spent about $280 million and $235 million, respectively.&nbsp;&nbsp;



But crypto clocked in at sixth place by the end of 2022. Its companies cumulatively spent a scant $3 million on deals during the second half as crypto winter intensified, a rough six months worsened still by the crash of FTX in November.



Crypto.com was the fifth-highest roller through June, standing at nearly $79 million — trailing AB In-Bev, Nike, Vivo and Qatar Airways.&nbsp;



That total remained about flat the rest of the year, as Crypto.com fell from fifth to 13th on the list of highest annual spenders, according to the December GlobalData report.



Crypto.com in 2021 <a href="https://blockworks.co/news/crypto-com-cmo-on-how-company-went-from-app-to-global-brand">bought the naming rights</a> to the Los Angeles Arena formerly known as the Staples Center as part of a 20-year, $700 million deal. Its splashy spends continued last year with a <a href="https://twitter.com/cryptocom/status/1493033811105378307?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1493033811105378307%7Ctwgr%5E05e18754e8ae689dad40ac095403766008a791f3%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fblockworks.co%2Fnews%2Fcrypto-com-cmo-on-how-company-went-from-app-to-global-brand" target="_blank" rel="noreferrer noopener">Super Bowl ad</a> in February, as well as <a href="https://blockworks.co/crypto-com-australian-football-league-sign-18m-sponsorship-deal-in-country-first">a five-year deal</a> with the Australian Football League, plus an agreement to sponsor the <a href="https://blockworks.co/news/crypto-com-adds-fifa-world-cup-sponsorship-to-sports-marketing-strategy">2022 FIFA World Cup</a>.&nbsp;&nbsp;



It’s not clear whether the exchange plans to renew for the next World Cup. And some of its longer-term deals could be in jeopardy too, according to Wiacek.&nbsp;



“Something like the Crypto.com arena deal, unless there is a bounce-back in the industry, I would be surprised if that makes it to term,” he said.



A Crypto.com spokesperson declined to comment.&nbsp;



<h3 class="wp-block-heading">Who is still spending?</h3>



OKX Chief Marketing Officer Haider Rafique told Blockworks that sports sponsorships are a major part of the company’s go-to-market strategy — and there’s no plans to change that this year.



“These activities play a key role in raising brand awareness, creating opportunities to tell our broader company story and better service our customers,” Rafique said. “This is true in bull and bear markets alike.”



Still, OKX is in the digital assets minority now. Rafique is eyeing a likely dramatic slowdown in related and upcoming dealflow.&nbsp;



Liquidity for crypto companies is still an issue, according to the marketing officer, upping the ante for executives to earmark funds soundly.&nbsp;



Coinbase, Crypto.com and Blockchain.com were among the crypto firms <a href="https://blockworks.co/news/blockfi-exec-hired-at-kraken">putting in place additional layoffs</a> last week. 



“This can only be a good thing,” Rafique said of the deal slowdown. “It will ensure that the proper due diligence is being done across the board, and it will balance the valuations of these deals, which were heavily inflated due to the sheer overcrowding of the market.”&nbsp;



But partnerships are still being struck, according to Wiacek — despite shrinking durations and smaller check sizes.



Digital asset trading company Blockfills inked a deal toward the end of November 2022 — just 10 days after FTX filed for bankruptcy — with the Chicago Blackhawks for the upcoming NHL season. Wiacek pegged the arrangement as in the neighborhood of $700,000.



And South Korea-based crypto exchange Upbit partnered with Italian soccer club S. S. C. Napoli earlier this month as a sponsor for the next two seasons. The company’s logo is set to appear on the back of the team’s uniforms as a result. Exact terms of the deal were not disclosed.&nbsp;



Amber Group, on the other hand, plans to minimize its marketing spend in the coming months.&nbsp;



The company terminated its sponsorship of Chelsea FC as part of larger cuts that included layoffs, Bloomberg <a href="https://www.bloomberg.com/news/articles/2022-12-09/crypto-s-amber-to-end-chelsea-sponsorship-axe-over-40-of-jobs-in-ftx-fallout?leadSource=uverify%20wall" target="_blank" rel="noreferrer noopener">reported</a>. The partnership resulted in Amber’s WhaleFin trading platform being inked on Chelsea’s kits.&nbsp;



Though Amber Group had raised a <a href="https://blockworks.co/news/crypto-lender-amber-raises-300m-to-avoid-significant-drawdowns">$300 million venture round</a> around the same time, a spokesperson told Blockworks that tough market conditions have led to ensuing strategy tweaks.&nbsp;



“We have gone back to the drawing board to refocus on our core engines of growth — our institutional and high net worth clients,” the spokesperson said. “This also means we are making significant cuts to our marketing expenses as we deprioritize our consumer business lines.”



Meanwhile, a spokesperson for Coinbase told Blockworks the exchange has no plans to move away from previously announced — and signed — commitments.



Coinbase and the NBA, for example, worked out a multi-year partnership in October 2021 that made the exchange the exclusive crypto platform partner of the NBA, WNBA, NBA G League, NBA 2K League and USA Basketball.&nbsp;&nbsp;



“We will continue to support the players, teams and organizations we’ve partnered with while educating a new generation on the [crypto economy,]” the representative said.&nbsp;&nbsp;



<h3 class="wp-block-heading">How deals are likely to change</h3>



After FTX’s slate of sponsorships fell apart, prospective crypto sponsors may run into more complex questions when it comes to revenues and their vetted ability to adhere to regular and agreed upon payments, according to Joshua Kay, an associate at the law firm Wiggin.



They may also find some of the more premium long-term sponsorships — such as the naming rights of a stadium — are not available, he told Blockworks.&nbsp;



As for terms of the deal, Kay added, the sponsor may be required to pay all or most of the sponsorship fees up front rather than on a season-by-season basis. A specific exit plan for the deal may become a prerequisite, too.



Alex Harvey, an associate for the sports unit at law firm Sheridans, said reducing the lengths of agreements may well make sense now. 



Standard termination rights for a company entering insolvency or breaching laws would be appropriate, according to Harvey. Other contractual protections, such as broad warranties and indemnities, ought to be par for the course, in his view.&nbsp;



“Crucially, they should also include robust termination provisions which allow them to immediately terminate the deal in certain circumstances,” Harvey said. “For example, if the crypto brand does something which brings them into public disrepute.”



Harvey told Blockworks that while sports entities are likely to take a “risk-averse” approach to crypto for the time being, a significant shift over the long term doesn’t appear to be in the cards.&nbsp;



“The vast majority of sports rights holders currently partnering with crypto brands are entering into those deals fully aware of the reputational risks, but they are nevertheless prepared to absorb those risks given the eye-watering sums on offer,” he said. “Provided the financial incentives remain, there’s no reason to suspect that will change.”



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Amber Group

Crypto Sports Deals Have Slowed — But They Aren’t Dead

Bessie Liu

Bear market conditions have plagued the crypto industry, and the recent demise of crypto exchange FTX has cast oceans of doubt for day to day consumers.&nbsp;That hasn&#8217;t stopped crypto funding rounds.



Singaporean based crypto trading firm Amber Group this month closed a $300 million Series C led by Fenbushi Capital US.



“Prior to the collapse of FTX, Amber was in the process of completing an extension to our Series B+ at a $3B valuation in preparation for a potentially prolonged crypto winter,” the company <a href="https://twitter.com/ambergroup_io/status/1603608618216984576" target="_blank" rel="noreferrer noopener">tweeted</a>. “Post the FTX collapse, we paused after a partial closing and instead moved forward on Series C.”



According to a <a href="https://twitter.com/ambergroup_io/status/1603608618216984576" target="_blank" rel="noreferrer noopener">Twitter post</a> from Dec. 16, Amber Group had less than 10% of its capital on FTX prior to its collapse. It reportedly laid off <a href="https://blockworks.co/news/amber-group-fraught-with-turmoil" target="_blank" rel="noreferrer noopener">300 staff</a> at the start of the month — roughly 40% of its workforce — and terminated sponsorship deals with Chelsea Football Club.



Amber said the fresh round of funding will help it focus on serving institutional and high-net-worth clients.&nbsp;



Another significant fundraise this month was secured by Aztec Network, an Ethereum security layer geared towards privacy.



Aztec&#8217;s $100 million Series B was led by prominent venture capital firm Andreessen Horowitz (a16z), with participation from A Capital, King River and Variant, among others.



The incoming cash will be used to develop its blockchain encryption architecture, which will allow “users to verify that blockchain rules were followed correctly without revealing any underlying information,” the company <a href="https://medium.com/aztec-protocol/aztec-raises-100-million-to-build-encrypted-ethereum-dd5062ba949c" target="_blank" rel="noreferrer noopener">said</a> in a Dec. 15 blog post.&nbsp;



&#8220;In the current public blockchain paradigm, users and entities unknowingly broadcast data in the public, compromising privacy and security to get trustlessness,&#8221; Aztec wrote.



Finally, the third largest funding round this month went to Fleek, a developer platform for crypto companies.



The company secured a $25 million Series A led by Polychain Capital. A handful of other investors, including Coinbase Ventures, Digital Currency Group and Protocol Labs participated in the round.



Fleek hopes to continue building its platform and growing its team, the company <a href="https://techcrunch.com/2022/12/01/web3-developer-platform-fleek-raises-25m-led-by-polychain-capital/" target="_blank" rel="noreferrer noopener">told</a> TechCrunch.&nbsp;



Other funding rounds this month include:



<ul class="wp-block-list">
<li>Nillion, a blockchain-less decentralized file storage network, nabbed $20 million in its latest funding round led by Distributed Global.</li>



<li>Tax and accounting software for digital assets, Bitwave closed a $15 million Series A co-led by Hack VC and Blockchain Capital.</li>



<li>Blocknative, a company building web3 infrastructure, also secured $15 million in its Series A led by Blockchain Capital and a few other investors.</li>
</ul>



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These Crypto Startups Nabbed Funding Rounds To Close Out 2022

Shalini Nagarajan

Embattled crypto lender Amber Group has raised $300 million amid reports of unpaid loads and delayed severance packages.



The Singapore-headquartered firm, which also facilitates crypto trading, initially eyed a $100 million extension to a Series B+ round at a $3 billion valuation, in line with its previous <a href="https://blockworks.co/news/crypto-trading-platform-amber-group-eclipses-3b-valuation-with-latest-raise" target="_blank" rel="noreferrer noopener">mark</a> in January.



But since thick FTX contagion spread across crypto markets, Amber Group changed tack to opt for a $300 million Series C round, led by Fenbushi Capital US and “joined by other crypto-native investors and family offices.”



“This new round of fundraising demonstrates investor confidence in Amber’s business and the commitment to shape our future together,” Amber said. “As part of that future, it&#8217;s important for us to adapt and protect our clients in this challenging market environment.”



Amber’s previous investors include Singapore state-owned Temasek Holdings, Pantera Capital, Coinbase Ventures and Tiger Global Management, per <a href="https://www.crunchbase.com/organization/amber-ai/investor_financials" target="_blank" rel="noreferrer noopener">Crunchbase</a>. The firm was founded in Hong Kong in 2017.



Amber Group will now “laser in” on a core client base of institutional and high net-worth investors, it said in a <a href="https://twitter.com/ambergroup_io/status/1603608618216984576" target="_blank" rel="noreferrer noopener">Twitter thread</a> on Friday.



Blockworks <a href="https://blockworks.co/news/amber-group-fraught-with-turmoil" target="_blank" rel="noreferrer noopener">previously reported</a> that Amber’s UK subsidiary WhaleFin, which offers a retail app for buying and trading digital assets, had been essentially shut down, per a source familiar with the matter. Amber tweeted <a href="https://blockworks.co/news/amber-group-says-business-as-usual" target="_blank" rel="noreferrer noopener">earlier this month</a> that everything was “business as usual.”&nbsp;



Amber’s is also yet to “issue an official statement” and “take potential legal actions&#8217; in apparent <a href="https://twitter.com/ambergroup_io/status/1601214677610287105" target="_blank" rel="noreferrer noopener">response</a> to a report from <a href="https://www.theblock.co/post/193616/amber-group-vauld-ceo-counterparty1-a-130-million" target="_blank" rel="noreferrer noopener">The Block</a>, which said the firm owed $130 million to Vauld CEO Darshan Bathija.&nbsp;



Vauld, another Singapore-based crypto lender, filed for bankruptcy in August, itself <a href="https://www.theblock.co/post/158647/crypto-lender-vauld-owes-363-million-to-retail-investors-after-halting-withdrawals" target="_blank" rel="noreferrer noopener">owing</a> $363 million to mostly retail creditors. Rival platforms including <a href="https://blockworks.co/news/celsius-bankruptcy-return-50m" target="_blank" rel="noreferrer noopener">Celsius</a>, <a href="https://blockworks.co/news/voyager-files-for-bankruptcy-days-after-freezing-withdrawals" target="_blank" rel="noreferrer noopener">Voyager</a> and <a href="https://blockworks.co/news/blockfi-bankruptcy-highlights" target="_blank" rel="noreferrer noopener">BlockFi</a> have also gone bellyup.



Amber has indirectly denied the reported loan to Bathija, but the said debt would represent nearly 45% of the money it just raised.



<h3 class="wp-block-heading">Amber slashed salaries and bonuses to survive crypto bear</h3>



Indeed, the raise comes at a sensitive time for Amber, whose 30-year-old cofounder Tiantian Kullander <a href="https://www.scmp.com/magazines/style/tech-design/article/3201390/who-was-tiantian-kullander-hong-kongs-crypto-king-amber-group-co-founders-shocking-death-age-30-has" target="_blank" rel="noreferrer noopener">died unexpectedly</a> in his sleep in late November.&nbsp;



The firm <a href="https://www.ft.com/content/5dca5327-124a-4a44-8af3-116e9634a2dd" target="_blank" rel="noreferrer noopener">canceled</a> US and European expansion plans and let go hundreds of employees earlier this month, with some former staff <a href="https://www.scmp.com/tech/tech-trends/article/3202601/crypto-trading-firm-amber-group-fends-rumours-amid-lay-offs-and-delayed-severance-payments-after-ftx" target="_blank" rel="noreferrer noopener">reportedly</a> complaining of delayed severance payments and blocked communications.&nbsp;



CEO Michael Wu told <a href="https://www.bloomberg.com/news/articles/2022-12-16/crypto-firm-amber-raises-300-million-to-tackle-damage-from-ftx" target="_blank" rel="noreferrer noopener">Bloomberg</a> the company’s headcount will drop by 40% to around 300 people.&nbsp;



Amber also <a href="https://www.bloomberg.com/news/articles/2022-12-09/crypto-s-amber-to-end-chelsea-sponsorship-axe-over-40-of-jobs-in-ftx-fallout" target="_blank" rel="noreferrer noopener">terminated</a> a $25 million sponsorship deal with the football club Chelsea as part of cost-cutting measures, which slashed management salaries and axed bonuses (Chelsea is still shown as a global partner on WhaleFin’s website).



Less than 10% of Amber’s total trading capital was held on FTX before it collapsed, the company said last month. Amber noted it had no exposure to Alameda or FTX’s native token FTT, however it was an active trader on the platform.



“While the vast majority of our clients and products remain intact, a few of our specific products would have experienced significant drawdowns as an aftermath of the FTX default, unless we could find ways to further protect those affected clients,” Amber <a href="https://twitter.com/ambergroup_io/status/1603608631257092097" target="_blank" rel="noreferrer noopener">tweeted</a> Friday.



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Crypto Lender Amber Raises $300M To Avoid ‘Significant Drawdowns’

Amber Group has yet to publicly address the latest reports around its financial health, outstanding liabilities, and its retail business, despite saying certain claims against the company have been inaccurate.



Amber Group said in a Dec. 6 tweet that the company and <a href="https://blockworks.co/news/crypto-trading-platform-amber-group-eclipses-3b-valuation-with-latest-raise" target="_blank" rel="noreferrer noopener">UK-based crypto subsidiary WhaleFin</a>, which operates a consumer-facing app, <a href="https://blockworks.co/news/amber-group-says-business-as-usual" target="_blank" rel="noreferrer noopener">“are business as usual</a>.” But a source familiar with the matter told Blockworks that the company’s Whalefin business has essentially been “shut down.”&nbsp;



The source, who spoke on the condition of anonymity, added that Amber Group has recently shifted focus to its institutional business.&nbsp;&nbsp;



Last week The Block <a href="https://www.theblock.co/post/193616/amber-group-vauld-ceo-counterparty1-a-130-million" target="_blank" rel="noreferrer noopener">reported</a> that Amber Group owes about $130 million to Darshan Bathija, the CEO of crypto lender Vauld, citing “a source with direct knowledge of the matter” and a legal document.



The crypto platform appeared to deny the report.



“Regarding certain false allegations against Amber today, our legal counsel will issue an official statement shortly and take potential legal actions,” the company <a href="https://twitter.com/ambergroup_io/status/1601214677610287105" target="_blank" rel="noreferrer noopener">tweeted</a> on Friday.&nbsp;



But the firm had not yet shared any follow-up to the claim, as of Monday mid-day.



An Amber Group spokesperson declined to comment.&nbsp;



Vauld <a href="https://blockworks.co/news/vauld-stops-withdrawals-eyes-restructure-after-users-pull-nearly-200m" target="_blank" rel="noreferrer noopener">suspended</a> withdrawals, trading and deposits on its network in July, just weeks after it <a href="https://blockworks.co/coinbase-backed-vauld-cuts-workforce-by-30-seeks-to-halve-exec-pay/" target="_blank" rel="noreferrer noopener">laid off 30%</a> of its staff.



Bathija and the company did not immediately return requests for comment.



<h3 class="wp-block-heading">Cutting costs and raising funds&nbsp;&nbsp;</h3>



The Financial Times <a href="https://www.theblock.co/post/193530/amber-group-satellite-hubs-lose-key-executives" target="_blank" rel="noreferrer noopener">reported</a> the day before that Singapore-based Amber Group had paused its expansion plans as it is in the process of raising the second half of a planned $100 million funding round.



<a href="https://www.linkedin.com/in/cactusraazi/" target="_blank" rel="noreferrer noopener">Cactus Raazi</a>, who was hired as Amber Group’s US CEO in October 2021, is among leaders who have left the company in recent months, a source told Blockworks. <a href="https://www.linkedin.com/in/angiedicarlo/" target="_blank" rel="noreferrer noopener">Angie Beehler</a>, formerly Amber Group’s global co-head of institutional sales and business development, and ex-Chief Strategy Officer <a href="https://www.linkedin.com/in/dimitrios-kavvathas-3bb3654/" target="_blank" rel="noreferrer noopener">Dimitrios Kavvathas</a> left the company in September, according to their LinkedIn profiles.



The company is reportedly getting ready to lay off several hundred people as well.



Bloomberg <a href="https://www.bloomberg.com/news/articles/2022-12-09/crypto-s-amber-to-end-chelsea-sponsorship-axe-over-40-of-jobs-in-ftx-fallout?leadSource=uverify%20wall" target="_blank" rel="noreferrer noopener">reported</a> Friday that Amber Group is set to cut its workforce to less than 400 from roughly 700 and is also seeking to end its sponsorship deal with Chelsea Football Club.



Several days prior to Bloomberg’s report about Amber Group layoffs, reporter Colin Wu <a href="https://twitter.com/WuBlockchain/status/1600018582212988929" target="_blank" rel="noreferrer noopener">tweeted</a> that the firm began to lay off hundreds of people again this month, citing former employees.



An Amber Group spokesperson declined to comment on the layoffs.



“Weathering through market cycles, we have to constantly adjust and pivot our business strategies, product offerings, and, as a result, internal teams and functions,” the firm <a href="https://twitter.com/ambergroup_io/status/1600101239294787584" target="_blank" rel="noreferrer noopener">said</a> on Dec. 6.



Amber Group<a href="https://twitter.com/ambergroup_io/status/1590382100955697154" target="_blank" rel="noreferrer noopener"> said last month</a> that it was an active trading participant on now-bankrupt crypto exchange FTX and had withdrawals yet to be processed — accounting for less than 10% of Amber Group’s total trading capital. Amber Group said at the time that the situation did not pose a threat to its business operations or liquidity.



More recently, Amber Group co-founder Tiantian Kullander unexpectedly died in his sleep on Nov. 23, according to <a href="https://www.ambergroup.io/newsDetail?id=444&amp;source=In%20the%20News&amp;page=1" target="_blank" rel="noreferrer noopener">a company post</a>. He was 30.



A spokesperson declined to comment on the impact of Kullander’s death on the company.



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Amber Group Claims ‘False Allegations’ Against Company, Provides No Details

As a year marred by the collapse of various industry players approaches its end, several more firms revealed rounds of layoffs over the past week, bracing for crypto winter’s low point.&nbsp;&nbsp;



Bloomberg <a href="https://www.bloomberg.com/news/articles/2022-12-09/crypto-s-amber-to-end-chelsea-sponsorship-axe-over-40-of-jobs-in-ftx-fallout?leadSource=uverify%20wall" target="_blank" rel="noreferrer noopener">reported</a> Friday that Amber Group is set to cut its workforce to less than 400 from roughly 700. The report came after reporter Colin Wu <a href="https://twitter.com/WuBlockchain/status/1600018582212988929" target="_blank" rel="noreferrer noopener">tweeted</a> Monday that the firm began to lay off hundreds of people again this month.



The company said in a Tuesday tweet that its operations as well as its WhaleFin app “<a href="https://blockworks.co/news/amber-group-says-business-as-usual" target="_blank" rel="noreferrer noopener">are business as usual</a>,” but acknowledged constantly adjusting internal teams and functions.



A spokesperson did not immediately return a request for comment.&nbsp;



Bybit CEO Ben Zhou said in <a href="https://twitter.com/benbybit/status/1599275418502459392" target="_blank" rel="noreferrer noopener">a series of Dec. 3 tweets</a> that the company is set to downsize “across the board” as it seeks to be more nimble to navigate the market slowdown.



“Difficult decision made today, but tough times demand tough decisions,” he said. “I have just announced plans to reduce our workforce as part of an ongoing re-organisation of the business as we move to refocus our efforts for the deepening bear market.”



A spokesperson did not return a request for comment.&nbsp;



Australian crypto exchange Swyftx also said it would be laying off a portion of its team. CEO Alex Harper said in <a href="https://swyftx.com/au/media/press-releases/swyftx-announces-further-team-changes/" target="_blank" rel="noreferrer noopener">a Monday note</a> to company staff that it cut 90 employees as it looks to gear up for tough crypto market conditions potentially getting worse.  



“Swyftx has no direct exposure to FTX, but we are not immune to the fallout it has caused in the crypto markets,” Harper said. “As a result, we have to prepare in advance for a worst-case scenario of further significant drops in global trade volumes during [the first half of] next year and the potential for more black swan-type events.”



Harper said Swyftx has up to five times more employees than most of its main Australian competitors.&nbsp;



“The truth is that Swyftx grew too fast,” the CEO added. “Our world was very different at the start of the year and our forecasts were for global trading volumes to carry on rising for at least six months longer than they did.”



Crypto tax startup Koinly <a href="https://blockworks.co/news/crypto-tax-startup-koinly-cuts-staffers-just-in-time-for-tax-season" target="_blank" rel="noreferrer noopener">recently cut 16 full-time employees</a>, or 14% of the company, representatives said Tuesday. 



In a statement, CEO Robin Singh said crypto investors have a “lack of awareness” when it comes to “filing their crypto losses.” The “actual <a href="https://blockworks.co/news/crypto-main-characters-drop-like-flies-as-bear-market-turns-one" target="_blank" rel="noreferrer noopener">crypto downturn</a>,” according to Singh, has hurt the company by a smaller margin.



<a href="https://blockworks.co/news/gamestop-layoffs-crypto-staff-axed" target="_blank" rel="noreferrer noopener">GameStop also laid off some employees</a>, including members of the team building GameStop’s blockchain wallet, <a href="https://www.axios.com/2022/12/05/gamestop-begins-layoff" target="_blank" rel="noreferrer noopener">Axios</a> reported.



The layoffs mean an increased number of crypto-focused professionals are in search of jobs.&nbsp;



<a href="https://www.linkedin.com/in/julia-draheim/" target="_blank" rel="noreferrer noopener">Julia Draheim</a>, a recruiter at staffing firm Proof of Talent, told Blockworks that although not many crypto companies are currently in growth mode, some smaller firms that recently secured Series A funding rounds are looking to expand their teams with senior-level people.



The employees burned by bankruptcies and layoffs are looking for something more “stable,” she added, noting that word means something different to everyone.&nbsp;



“People that are super passionate about the space in general and see it as something that’s going to be important in the future are definitely not shying away [from crypto],” she said. “Most people just want to make sure that there’s strong funding and product-market fit.”



<h3 class="wp-block-heading">New hires</h3>



Draheim said that while certain former FTX employees have been concerned about being associated with the collapsed exchange, companies have not been holding what happened to their former employer against them.



<a href="https://www.linkedin.com/in/adamcolejacobs/" target="_blank" rel="noreferrer noopener">Adam Jacobs</a>, FTX’s former global head of payments, <a href="https://blockworks.co/news/former-ftx-head-lands-at-nuvei%EF%BF%BC" target="_blank" rel="noreferrer noopener">began his role</a> as a senior vice president of corporate development for Montreal-based payments technology company Nuvei.



Jacobs began working at crypto exchange FTX in June 2021. The crypto exchange <a href="https://blockworks.co/news/5-highlights-ftx-bankruptcy" target="_blank" rel="noreferrer noopener">filed for bankruptcy</a> last month.



Cowen Digital brought aboard <a href="https://www.linkedin.com/in/taylor-s-cable-33282622/" target="_blank" rel="noreferrer noopener">Taylor Cable</a> — a former chief operating officer at Blockchain.com Asset Management — to lead its efforts in Europe and Asia. 



Financial services firm Cowen <a href="https://blockworks.co/news/financial-firm-cowen-unveils-digital-assets-unit" target="_blank" rel="noreferrer noopener">unveiled</a> its digital assets division in March. TD Bank said in August that it would <a href="https://blockworks.co/td-bank-buys-cowen-in-tradfi-push-with-crypto-twist/" target="_blank" rel="noreferrer noopener">acquire Cowen for $1.3 billion</a>, though details about how it could seek to leverage Cowen’s digital assets unit remain unclear. 



Cable was also head of institutional client trading at Blockchain.com. Prior to joining the crypto company, he was COO at artificial intelligence trading broker AiX and spent more than a decade at Moore Capital Management.



Web3 gaming company Immutable hired <a href="https://www.linkedin.com/in/shin-novation/details/experience/" target="_blank" rel="noreferrer noopener">David Shin</a> as its head of business development for the Asia-Pacific region and interim leader of the Europe, Middle East and Africa region.



He joins Immutable from Klaytn Global Group, where he led the team focused on the adoption of the Klaytn blockchain.&nbsp;



Shin left the banking industry in 2019 after working as head of global equity derivatives and repo sales at TD Bank. He went on to be head of exchange at Bitcoin.com and led TZ APAC, a Singapore-based team focused on the adoption of the Tezos blockchain.&nbsp;



NFT platform Magic Eden hired <a href="https://www.linkedin.com/in/chrisakhavan/" target="_blank" rel="noreferrer noopener">Chris Akhavan</a> as its first chief gaming officer. 



Akhavan was previously chief revenue officer at mobile game developer Glu Mobile, which was acquired by Electronic Arts (EA) last year.&nbsp;



Magic Eden <a href="https://blockworks.co/news/nft-marketplace-magic-eden-raises-130m-for-creator-collector-support" target="_blank" rel="noreferrer noopener">raised $130 million</a> in June, bringing its valuation to $1.6 billion. The company launched a venture arm the following month that focuses on investing in Web3 games.



Wave Financial appointed <a href="https://www.linkedin.com/in/harumiuratathompson/" target="_blank" rel="noreferrer noopener">Harumi Urata-Thompson</a> as its chief financial officer.



She is set to help the Los Angeles-based crypto investment advisory company build out its operations infrastructure and back office solutions to better service the team’s institutional and high-net-worth clients. 



Urata-Thompson was most recently CFO at blockchain services company Emrit. Before that, she was chief investment officer at crypto lender Celsius, which <a href="https://blockworks.co/news/celsius-to-file-for-bankruptcy-imminently-report" target="_blank" rel="noreferrer noopener">filed for bankruptcy</a> in July.



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Latest in Crypto Hiring: More Fall Victim to Persistent Layoffs

Crypto platform Amber Group is reportedly laying off more people in a move that mirrors continued staff cuts across the space as the bear market trudges on.&nbsp;



The Singapore-based firm had cut between 5% and 10% of its headcount in 2022, <a href="https://www.bloomberg.com/news/articles/2022-09-09/crypto-trading-firm-amber-eliminated-as-much-as-10-of-its-staff?leadSource=uverify%20wall" target="_blank" rel="noreferrer noopener">Bloomberg reported</a> in September.&nbsp;



Now, the company has begun to lay off hundreds of people again this month, <a href="https://twitter.com/WuBlockchain/status/1600018582212988929" target="_blank" rel="noreferrer noopener">reporter Colin Wu tweeted late Monday</a>, citing former employees. Wu added that Amber Group has asked Chinese employees to work from home and clear their offices.



Amber Group reports having more than 1,000 institutional clients and $5 billion in assets on its platform. The firm <a href="https://twitter.com/ambergroup_io/status/1600101239294787584" target="_blank" rel="noreferrer noopener">said in a tweet</a> Tuesday that Amber Group and its <a href="https://www.whalefin.com/" target="_blank" rel="noreferrer noopener">WhaleFin app</a> were “business as usual,” but alluded to some changes amid tough market conditions.&nbsp;&nbsp;



“Weathering through market cycles, we have to constantly adjust and pivot our business strategies, product offerings, and, as a result, internal teams and functions,” Amber Group tweeted.



An Amber Group spokesperson did not immediately return a request for further comment.



Layoffs in the segment have persisted in the wake of crypto exchange <a href="https://blockworks.co/news/whats-next-for-ftx-and-its-customers-after-bankruptcy-filing" target="_blank" rel="noreferrer noopener">FTX filing for bankruptcy</a> last month. Bybit CEO Ben Zhou said in a series of Dec. 3 tweets that the company is set to downsize “across the board,” while Australian crypto exchange Swyftx revealed Monday that it cut 90 employees.



Amber Group said in <a href="https://twitter.com/ambergroup_io/status/1590382086514704390" target="_blank" rel="noreferrer noopener">a Nov. 9 tweet thread</a> — as the extent of FTX’s insolvency emerged — that the company had no exposure to Alameda Research, a firm also founded by former FTX CEO Sam Bankman-Fried, or FTX’s native token, FTT.&nbsp;



It did however note that it was an active trading participant on FTX and had withdrawals yet to be processed — accounting for less than 10% of Amber Group’s total trading capital.&nbsp;



“It does not pose a threat to our business operations or liquidity,” the company tweeted at the time.&nbsp;



The report comes after Amber Group co-founder Tiantian Kullander unexpectedly died in his sleep on Nov. 23, according to <a href="https://www.ambergroup.io/newsDetail?id=444&amp;source=In%20the%20News&amp;page=1" target="_blank" rel="noreferrer noopener">a company post</a>. He was 30.&nbsp;



Amber Group in February had <a href="https://blockworks.co/news/crypto-trading-platform-amber-group-eclipses-3b-valuation-with-latest-raise" target="_blank" rel="noreferrer noopener">raised an additional $200 million</a> as part of an extended Series B round led by Singaporean state holding company Temasek. The fundraise gave the company a valuation of about $3 billion.



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‘Business as Usual,’ Says Amber Group, Despite Reported Layoffs and Founder’s Death

<div id="highlights-block_623db5c6dfc0b" class="highlights">
 <ul>
 <li>Former legal counsel at Deutsche Bank joins Amber Group</li>
 <li>Ethereum scaling platform Polygon names a new chief information security officer</li>
 </ul>
 
</div>



Anthony Mazzarese and Brandon Mulvihill have left financial services company Jefferies to co-found a startup aiming to serve institutional clients in the crypto space.&nbsp;



Mazzarese was Jefferies’ global head of FX prime brokerage distribution, while Mulvihill served as its global head of FX prime brokerage. The two will now focus on bridging the gap between traditional financial services and digital assets through industrial-grade technology, trade flow expertise and attractive commercial terms, Mazzarese told Blockworks.



The former Jefferies executives are building a team and securing funding, he added. Additional details about the startup are set to come in the next few weeks.



Digital asset platform Amber Group appointed Ehsan Haque as its general counsel for Europe, Middle East and Africa (EMEA).



Haque joins Amber Group from his latest role as global head of legal and compliance for private equity firm Hamilton Capital Holdings. He has also recently worked as general counsel for investment technology platform AlphaSwap and Lending Block, an online digital asset lending and borrowing platform.&nbsp;



Earlier in his career, Haque was legal counsel for Deutsche Bank. He later joined Royal Bank of Scotland and was head of equities for Nomura’s EMEA legal department.



The hire follows Amber Group’s <a href="https://cms.blockworks.co/crypto-trading-platform-amber-group-eclipses-3b-valuation-with-latest-raise/" target="_blank" rel="noreferrer noopener">latest $200 million raise</a> last month led by Singaporean state holding company Temasek, giving the company a valuation of roughly $3 billion.



Web3 digital identity platform Unstoppable Domains hired Sajjad Rehman as its head of Europe and Nilkanth Iyer as its head of Asia.



Launched in 2018, Unstoppable Domains allows anyone to purchase a domain name that is minted as an NFT on the blockchain. It has more than 2 million registered NFT domains.



Rehman joins from Amazon-owned video livestreaming service Twitch, where he was vice president of business development for the EMEA region. Iyer previously held roles at software intelligence company CAST and tech goliath IBM.



The two executives will seek to help Unstoppable Domains onboard millions of new users to Web3 by partnering with wallets, exchanges and other industry players in Europe and Asia.



Mudit Gupta recently announced on Twitter that he would be joining Polygon as its chief information security officer.



Gupta also serves as an advisor at SushiSwap and a technical partner at Delta Blockchain Fund, according to his LinkedIn profile. He had worked for nearly three years as a senior solidity developer and then lead blockchain engineer for software development company Polymath.



“Polygon is the leading Ethereum scaling platform, and I&#8217;m stoked about our upcoming ZK rollups,” Gupta said in <a href="https://twitter.com/Mudit__Gupta/status/1505918543766122500" target="_blank" rel="noreferrer noopener">a Monday tweet</a>. “Security has been a priority at Polygon, and I will be pushing it to the next level.”



Decentralized financial market infrastructure company Bosonic hired Paddy Boyle as its global head of clearing and derivatives. Founded in 2016, the firm offers infrastructure aiming to eliminate counterparty credit and settlement risk in digital asset markets.&nbsp;



Boyle was previously a partner at Goldman Sachs, where he spent 16 years as the investment bank’s global head of foreign exchange options. More recently, he was a managing director and global head of ForexClear at London-based clearing house LCH.



Former Treasurer of the United States Rosie Rios joined the board of directors of Unicorn Hunters, a platform that connects companies looking for expansion capital to achieve a billion-dollar valuation.



Rios’ experience will be key to Unicorn Hunters achieving its strategic objectives, which include making Unicoin the top equity-backed cryptocurrency in the world, the company announced Wednesday.



Unicoin, which <a href="https://www.prnewswire.com/news-releases/unicorn-hunters-introduce-unicoin-an-equity-backed-dividend-paying-cryptocurrency-as-a-solution-to-the-high-volatility-of-traditional-cryptocoins-301488540.html" target="_blank" rel="noreferrer noopener">launched last month</a>, pays dividends and is backed by equity in emerging high-growth companies.&nbsp;



The RLY Network Association hired Jeremiah Owyang as its chief marketing officer.



The non-profit supports the infrastructure and development of the RLY Network, which powers projects including Rally.io, Unite.io and SuperLayer.io.



Owyang is an advisor and angel investor in several early-stage startups, including blockchain gaming giant <a href="https://cms.blockworks.co/metaverse-will-empower-creators-ceo-says/" target="_blank" rel="noreferrer noopener">Animoca Brands</a>. He also founded Catalyst Companies, a council for corporations that are seeking to innovate with new technologies.



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Latest in Crypto Hiring: Jefferies Execs Leave to Create Startup

Morgan Chittum

<div id="highlights-block_62334f9f52f94" class="highlights">
 <ul>
 <li>Participants include Pantera, Brevan Howard, Alan Howard, Amber Group, Blockchain.com, Circle Ventures and Finality Capital Partners</li>
 <li>The capital will go toward “opening up more grant programs, such as a more robust grant program to support developers,” according to Mina Foundation’s Evan Shapiro</li>
 </ul>
 
</div>



Blockchain protocol Mina secured $92 million in a funding round led by FTX Ventures and Singaporean hedge fund Three Arrows Capital.



The capital will go toward “opening up more grant programs,” to “support developers,” Evan Shapiro, chief executive at Mina Foundation, told Blockworks.&nbsp;



“This [investment] from some of the most respected entities in crypto bolsters our aim to ensure that Mina becomes the go-to privacy and end-to-end security layer for Web3 while remaining powered by participants,” Shapiro said.



Other investors in the round include Pantera, Brevan Howard, Alan Howard, Amber Group, Blockchain.com, Circle Ventures and Finality Capital Partners.



Mina is the creator of a proof-of-stake protocol which bills itself as the “world’s lightest blockchain.” The project uses recursive zero-knowledge proofs to keep the state of the network at a tiny 22 kilobits (kb) — about 2,800 characters or 10 tweets. For comparison, Bitcoin’s blockchain <a href="https://ycharts.com/indicators/bitcoin_blockchain_size" target="_blank" rel="noreferrer noopener">is currently</a> about 396GB, while Ethereum <a href="https://ycharts.com/indicators/ethereum_chain_full_sync_data_size" target="_blank" rel="noreferrer noopener">weighs in</a> at 601GB to sync the full chain.



Imagine taking a picture of a sunset while on vacation in Hawaii to prove you were there. Now, someone takes a picture of your picture. Only, unlike with snapshot photos, a cryptographic technique known as <a href="https://minaprotocol.com/blog/what-are-zk-snarks" target="_blank" rel="noreferrer noopener">zk-SNARKS</a> allows the second picture holder to prove with certainty that you were there in Hawaii just as well as you yourself could.



In theory, the blockchain&#8217;s small size means Mina could more easily <a href="https://cms.blockworks.co/measuring-decentralization-is-your-crypto-decentralized/" target="_blank" rel="noreferrer noopener">decentralize</a>, because node operators do not require a significant investment in hardware. Developers of both Ethereum and Bitcoin have plans to allow for so-called “<a href="https://eth.wiki/en/concepts/light-client-protocol" target="_blank" rel="noreferrer noopener">light clients</a>” that would use similar techniques to function without a full copy of the chain history.



But on Mina, all participants act as full nodes and take part in maintaining consensus, <a href="https://minaprotocol.com/blog/what-is-ouroboros-samisika" target="_blank" rel="noreferrer noopener">using a variation</a> of the Ouroboros proof-of-stake protocol that was first developed for Cardano.



The system relies on another network participant dubbed a “prover” (a bit like <a href="https://cms.blockworks.co/the-investors-guide-to-bitcoin-mining/" target="_blank" rel="noreferrer noopener">a Bitcoin miner</a>, but without the energy use) which does need to store the full state.



There is a downside to computing zero-knowledge proofs, however: <a href="https://youtu.be/EugpncZGNnU?t=345" target="_blank" rel="noreferrer noopener">Mina’s 1 transactions-per-second</a> (TPS) rate makes it considerably slower than alternative layer-1 chains like Cosmos and Solana, and even slower than the Bitcoin network’s 7 TPS.



The team prefers to focus on a different mental model for scalability, <a href="https://minaprotocol.com/blog/solving-the-scalability-trilemma" target="_blank" rel="noreferrer noopener">they call ScaDe</a>, for Scalability-per-unit-of-Decentralization.



Mina is “built for mass adoption at both the user and application level,” Brian Lee, a partner at FTX Ventures, told Blockworks, adding that it will “enable a new generation of Web3 applications.”



Last year, the blockchain <a href="https://www.coindesk.com/business/2021/05/05/lightweight-mina-blockchain-raises-187m-in-coinlist-token-sale/" target="_blank" rel="noreferrer noopener">raised $18.7 million</a> in its token sale on CoinList.&nbsp;



Macauley Peterson contributed reporting for this story.



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Alan Howard

FTX Ventures, Three Arrows Capital Lead $92M Raise for Mina Blockchain

Jacquelyn Melinek

<div id="highlights-block_621907007df90" class="highlights">
 <ul>
 <li>Luna Foundation Guard raised $1 billion in a private token sale, while Amber Group closed a $200 million extended Series B round</li>
 <li>Amid the massive rounds, there were more modest raises too, including a $33 million Series B for InfStones and a $34 million raise for Aligned</li>
 </ul>
 
</div>



As February comes to an end, cryptocurrencies are showing signs of recovery and capital is continuing to roll into crypto.



Over the past 24 hours, the cryptocurrency market was up 9.7%, according to <a href="https://cms.blockworks.co/prices/" target="_blank" rel="noreferrer noopener">prices</a>. The two largest cryptocurrencies by market capitalization, bitcoin and ethereum, were up 9.9% and 11.35%, respectively, as of 9:45 am ET Friday.



Over $1.3 billion in investments poured into the crypto sector this week. This is in part due to some major funding rounds including Luna Foundation Guard’s <a href="https://cms.blockworks.co/nonprofit-raises-1b-to-create-bitcoin-reserve-support-terra-ecosystem-growth/" target="_blank" rel="noreferrer noopener">$1 billion</a> private token sale, which is one of the largest raises in the crypto sector, and Amber Group’s <a href="https://cms.blockworks.co/crypto-trading-platform-amber-group-eclipses-3b-valuation-with-latest-raise/" target="_blank" rel="noreferrer noopener">$200 million</a> extended Series B round.



Amid the massive rounds, there were low to multi-million dollar raises, too, including a <a href="https://cms.blockworks.co/blockchain-infrastructure-provider-infstones-closes-33m-series-b/" target="_blank" rel="noreferrer noopener">$33 million Series B</a> closed by blockchain infrastructure provider InfStones and a <a href="https://cms.blockworks.co/aligned-raises-34m-to-grow-defi-and-web3-infrastructure/" target="_blank" rel="noreferrer noopener">$34 million</a> raise by a DeFi and Web3 infrastructure platform Aligned.&nbsp;



Total value locked on DeFi (decentralized finance) protocols has surged in the past 12 months, from $52 billion to $196 billion, according to <a href="https://defillama.com/" target="_blank" rel="noreferrer noopener">data</a> from DeFi Llama. With that hike in TVL, demand has also increased for the sector, Aligned founder Sam Cassatt told Blockworks on Thursday.



“Demand will continue to grow,” Cassatt said. “I don’t see this slowing down, it’s getting larger day by day.”&nbsp;



Web3 and DeFi dominated the emerging technology investment landscape in Q4 2021, with $2.4 billion invested across 26 deals during that time frame, according to a PitchBook report on Thursday. The two sectors accounted for about 13%, or $4.3 billion of the <a href="https://cms.blockworks.co/report-vcs-invested-33b-in-crypto-and-blockchain-startups-in-2021/" target="_blank" rel="noreferrer noopener">$33 billion</a>, invested capital in crypto last year.



Other notable capital raises this week include:&nbsp;



<ul class="wp-block-list"><li>DeFi protocol Teller served up a <a href="https://www.yahoo.com/now/teller-closes-6-85m-strategic-170000480.html" target="_blank" rel="noreferrer noopener">$6.85 million</a> strategic raise</li><li>Blockchain-based game Cradles closed a <a href="https://www.yahoo.com/lifestyle/cradles-closes-5-million-private-140000428.html#:~:text=GEORGE%20TOWN%2C%20Cayman%20Islands%2C%20Feb,round%20led%20by%20Animoca%20Brands." target="_blank" rel="noreferrer noopener">$5 million</a> private round led by Animoca Brands</li><li>DeFi app Catalog logged $7.5 million to help create a cross-chain and multichain future</li><li>Emerging Web3 startup Fast Break Labs filled a <a href="https://www.prnewswire.com/news-releases/fast-break-labs-announces-6-million-seed-round-co-led-by-patron-and-pantera-capital-301488191.html" target="_blank" rel="noreferrer noopener">$6M seed round</a> led by Patron and Pantera Capital&nbsp;</li><li>Binance-backed fantasy strategy game Heroes of Mavia roped in $2.5 million, led by Crypto.com Capital.</li></ul>



Check back next week for more funding news.



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Aligned

Funding Roundup: Major Raises of $1B and $200M Join Startup Spree

Sebastian Sinclair

<div id="highlights-block_621514f852b17" class="highlights">
 <ul>
 <li>Amber Group has raised a total of $328 million to date with a company valuation of $3 billion</li>
 <li>The firm has over $5 billion in assets under management</li>
 </ul>
 
</div>



In yet another sign of burgeoning industry investments, crypto startup Amber Group announced Tuesday it has raised a further $200 million in an extended Series B funding round led by Singaporean state holding company Temasek.



Funding will go toward hiring efforts as the company eyes off institutional business in the EU and the Americas, as well as the expansion of its UK-based crypto subsidiary WhaleFin, Amber Group&#8217;s global head, Michael Wu, said in a statement.



&#8220;We will cast our sights beyond business expansion and strategic acquisitions too,&#8221; said Wu. &#8220;We will continue to broaden our support of sustainability initiatives, with our recent partnership with the Whale and Dolphin Conservation being only the start of this journey.”



It marks yet another instance of large money being thrown at DeFi crypto companies as the industry continues to expand. Earlier this month, Web3 blockchain startup <a href="https://cms.blockworks.co/web3-startup-alchemy-raises-200m-to-fuel-blockchain-development/" target="_blank" rel="noreferrer noopener">Alchemy</a> closed a $200 million round intended for Web3 developers. A week later blockchain-focused venture capital firm Woodstock announced the raise of $100 million for its fund.



Since inception, Amber Group’s cumulative transaction volume has surpassed $1 trillion, and the company has over $5 billion in assets under management.



The latest funding is the largest for the Singapore-headquartered startup whose valuation now stands at $3 billion. A total of $328 million in venture capital has been raised since its founding in 2018 by Morgan Stanley alumni. The company offers digital asset tech infrastructure and research in a bid to assist institutional clients in their purchase of crypto-related products as well as providing access to liquidity.



Participation in the extended round also came from existing shareholders including Sequoia China, Pantera Capital, Tiger Global Management, Tru Arrow Partners, and Coinbase Ventures, among others who were exercising their pro-rata rights.



<blockquote class="wp-block-quote is-style-default is-layout-flow wp-block-quote-is-layout-flow">&#8220;With investment in Amber Group’s previous round, we are impressed by the professionalism of Michael and his team, as well as their ability to execute, their growth and focus on compliance,&#8221; said Steven Ji, Partner of Sequoia China. &#8220;We continue to invest this round and believe Amber Group has the potential to become a leading digital asset platform in the Asian market.” </blockquote>



The latest raise follows on from the startup&#8217;s recent Series B in June 2021 which saw the closure of a <a href="https://cms.blockworks.co/amber-group-raises-100-million-series-b-as-defi-booms/" target="_blank" rel="noreferrer noopener">$100 million round</a> led by China Renaissance and a post-money valuation of $1 billion. The company also raised $28 million of Series A funding led by Paradigm and Pantera Capital in December 2019, <a href="https://my.pitchbook.com/profile/231107-59/company/profile#insights" target="_blank" rel="noreferrer noopener">data by Pitchbook</a> shows.



When asked why Amber felt the need to extend the funding for its Series B, Wu told Blockworks the decision was driven by a strategic angle for Temasek to join on as an investor.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">&#8220;With Singapore being our new HQ, having an endorsement in the form of an investment from the state-owned fund is something we are very excited about,&#8221; said Wu. &#8220;This round was not planned but came as a result of mutual interest to bring in a very strategic investor.&#8221;</blockquote>



Global&nbsp;investment&nbsp;company Temasek is headquartered in Singapore and is government-owned. The state holding company manages a net portfolio worth an estimated <a href="https://www.channelnewsasia.com/business/temaseks-net-portfolio-value-rebounds-record-high-2022356" target="_blank" rel="noreferrer noopener">S$381 billion</a> (US$282.9 billion).



&#8220;From radically transforming the concept of ownership and value in the global economy, digital assets are redefining the way we live outside of the financial ecosystem,” Wu said. “We want to help create a digital future where digital assets empower people with the opportunity and agency to shape a better world for all.”



<hr class="wp-block-separator has-alpha-channel-opacity"/>



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Crypto Trading Platform Amber Group Eclipses $3B Valuation With Latest Raise

Sam Reynolds

<div id="highlights-block_60d09f3ca701d" class="highlights">
 <ul>
 <li>Hong Kong’s Amber Group said Monday that it had closed a series B round which will be used to expand trading services</li>
 <li>Fundraise values the company at $1 billion, up 10x from its Series A in 2019</li>
 </ul>
 
</div>



As institutional interest builds in Decentralized Finance (DeFi), Hong Kong-based liquidity provider and trading infrastructure company Amber Group said that it has closed a $100 million Series B round led by China Renaissance and backed by Series A participants Pantera Capital, Coinbase Ventures and Blockchain.com.



In an interview with Blockworks, Tiantian Kullander, Co-Founder of Amber Group, said that the firm has seen a “warming up” of interest from investors in DeFi projects.&nbsp;



“We have seen a burgeoning interest from non-crypto native firms over the past year,” he said. “Ranging from traditional macro hedge funds to single and multi family offices, these clients are looking to add crypto strategies as a way to diversify their portfolios.”



Amber Group says it offers principal algorithmic trading, electronic market-making, high-frequency trading, OTC trading, borrowing and lending, derivatives, and other structured products with $1.5 billion in trading capital that varies based on bitcoin and ether prices.



The firm is also a member of derivative exchange BitMex’s top-25 leaderboard for total notional value traded. In a statement, the company noted that its cumulative trading volumes have doubled from $250 billion since the beginning of the year to over $500 billion.



“With the Cambrian explosion of DeFi projects covering different areas of the market, the ecosystem provides users with access to a full spectrum of financial services ranging from lending to trading and derivatives etc,” Kullander told Blockworks. “Since many leading protocols also generate cash flows, this makes valuation of projects easier vs. something like BTC which falls under the store-of-value category.”



This announcement comes amidst a concerted effort to build more pipes that connect DeFi to the traditional finance sector.



In May, <a href="https://cms.blockworks.co/vesper-joins-forces-with-blockforce-to-create-defi-fund/" target="_blank" rel="noreferrer noopener">hedge fund Blockforce Capital</a> announced that it had partnered with DeFi protocol Vesper Finance to build a regulatory-compliant wrapper that would allow Blockforce’s accredited investors access to Vesper’s liquidity pools without the complications of tokens or wallets.