Crypto Shock of 25 Million Dollars to the British Giant! The Deal is Over
The bearish trend in the crypto market is blowing a negative wave. The general decline affects crypto assets and firms in different ways. Following the collapse of the FTX crypto exchange, many individual and institutional investors suffered huge losses.
While many venture firms that invest in exchanges are trying to calculate their losses, some have had to announce that they are not involved in the exchanges to reassure their users. Moreover, with FTX filing for bankruptcy, some of the affected companies now have little hope of recovering their funds trapped on the platform.
Crypto Firm Terminates Its Agreement with the Football Club
According to a report, crypto trading company Amber Group has decided to withdraw its agreement with Chelsea FC. As a result, the Singapore-based crypto firm is ending its $25 million sponsorship deal with the football club.
Amber Group serves as one of the leading digital asset firms in the industry. Its activities are spread to different parts of the world with offices in Europe, America and Asia. The company offers a wide range of crypto asset services, such as trading, payments, financing, investment, propagation and others. Temasek and Sequoia Capital are backing the crypto trading firm.
Amber announced the sponsorship deal with Chelsea about seven months ago and was supposed to last for the current 2022/2023 football season. As part of the deal, the football club has incorporated the logo of Amber’s WhaleFin trading platform into the players’ jerseys. This practice was planned to continue until the end of the agreement, but has now been canceled.
Amber Group Is Reducing Its Headcount
In addition to the termination of the sponsorship agreement, Amber Group reportedly laid off 40% of its workforce. The company laid off about 300 employees, leaving fewer than 400 people in its workforce. The firm had reported having more than 1,100 employees at its peak. Amber attributed the new staff reduction move to the prevailing bearish trend in the crypto market.
The falling conditions have destroyed some firms such as Celsius Network, FTX and BlockFi. In addition, the crypto trading company is reducing its retail operations to focus on family offices and institutional investors.
Reports from analysts on the chain suggest that Amber could suffer the same end as Alameda Research, the trading platform linked to the collapsed FTX exchange. According to data from crypto messenger lookonchain, an analyst, Amber Group has only $9.46 million in assets.
However, Annabelle Huang, Managing Partner of the Amber Group, denied the allegations related to the published form linked to this statement. Huang posted a statement on Twitter to inform that the company was still conducting business as usual and there were no withdrawal restrictions.
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