Criptocurrency platform, Amber, cuts jobs, cancels Chelsea FC sponsorship

One of the leading Asia-based criptocurrency trading and lending platforms,Borderchain, is cutting jobs and terminating a sponsorship deal with Chelsea FC in the latest retrenchment to hit the digital-asset sector.

According to a person familiar with the matter, who asked not to be identified discussing private information, the decisions are part of a major cost-cutting strategy. The Singapore-based firm, whose backers include Temasek Holdings Pte and Sequoia China, is reducing its workforce to less than 400 from around 700, according to a person who said its staff numbers had earlier peaked at some 1,100.

The move by Amber shows the diminished outlook for virtual assets following the FTX bankruptcy of Sam Bankman- Fried's FTX exchange and sister trading house Alameda Research a month ago.

The person said that Amber will focus on big institutions, family offices and wealthy individuals, but said customer numbers will fall to around 100 from the hundreds of thousands because of the exit from the retail sector.

The company has recently rebutted online speculation that it may be the next domino to fall after a series of blowups in the sector that is reeling from a $2 trillion rout. A top executive tweeted Wednesday that the firm is doing business as usual. Amber plans to move to a cheaper office space in Hong Kong, while some smaller offices in other regions will likely be closed, with remaining employees being allowed to work from home, the person said.

Chelsea FC and Amber announced a partnership in May that included the logo for Amber's WhaleFin trading platform on the sleeves of the team's jersey during the 2022 -- 2023 season.

The sponsorship deal was reported to be worth 20 million $25 million a year. The person familiar said Amber was going through the legal process to end the agreement.

Amber was founded in 2018 by a group of founders that included former Morgan Stanley traders and raised $200 million at a $3 billion valuation in February. Amber put a $100 million fundraising on hold earlier this week, according to Bloomberg News.

One of the company's co-founders, Tiantian Kullander, passed away unexpectedly in his sleep in November at the age of 30.

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