Amber’s “$300 million” Series C Funding Sparked Speculation As A Debt-To-Equity Exchange

Amber Group’s recent US$300 million C-round funding has aroused numerous discussions.

Amber Group’s recent $300 million C-round fundraising has aroused many conversations, including concern about whether there is any sort of “debt-to-equity swap,” and there are many bizarre and confusing things in it. Fenbushi America led the $300 million US dollar transaction, yet it is unusual for Fenbushi to be the only publicly declared investor in such a large amount of finance.

The use of the phrase “300 million US dollars” is likewise unusual. The firm stated in an interview with Bloomberg that the “300 million US dollars” of the C round of financing will be utilized for consumers who have experienced losses on Amber platform products as a result of the implosion of FTX; and arbitrage products between exchanges. The description here is likewise unusual. 

Finally, Amber indicated that FTX holds less than 10% of the funds, although the actual quantity is not disclosed. The firm said in a press statement at the start of the year that it manages assets worth $5 billion USD. Amber owes Vauld around $130 million and must return it by June 2023. Vauld went bankrupt after swallowing user funds and owes creditors over $400 million. Amber is furious and intends to sue for false information (prosecution).

Amber has reduced its workforce from 1300 to 300 people and announced that it will exit the retail business. Amber’s prior major blunders were naively extending the scale of employees, arbitrarily expanding company to various industries such as DeFi Metaverse NFT, and spending large sums of money on football teams such as Chelsea. The true condition of this $300 million round of investment is still being probed.

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