SINGAPORE, Dec 10 — Amber Group, a cryptocurrency startup backed by state investment firm Temasek Holdings, is scaling back its growth plans and "adjusting” its headcount, but it is not at risk of insolvency, the company said yesterday (December 9).

Its statement, made in response to TODAY's queries, came after media outlets including The Financial Times reported that Amber Group is now "thinly staffed” and some employees are facing delayed salary payments as the company slashes headcount.

Why it matters

• News of Amber Group’s reported layoffs is coming hot on the heels of cryptocurrency exchange FTX’s demise and the greater calls to regulate such exchanges and platforms more

• Even before FTX collapsed, there were a series of other crypto firms abruptly shutting down and burning retail investors, for example, Terra, Three Arrows Capital, Voyager Digital and Celsius Network

• In the case of FTX, Temasek Holdings had a 1 per cent stake in it

• After the collapse, Temasek Holdings said that it will write down its full investment of US$275 million (around S$377 million) in FTX

• This became a subject of parliamentary debate and Temasek Holdings is conducting an internal review of the investment and losses in FTX

What is this Amber Group?

• Amber Group is not to be confused with the group that encompasses Amber Compounding Pharmacy and Amber Laboratories, which were in the news earlier this week

• Member of Parliament and lawyer Christopher de Souza was representing the latter pharmaceutical and retail skincare firms in a High Court suit and a disciplinary tribunal found that he had assisted his clients in suppressing evidence

• The Amber Group backed by Temasek Holdings is a financial technology startup founded in Hong Kong in 2017 and headquartered in Singapore, with operations across 12 cities

• It was billed as a liquidity provider offering clients services that include algorithmic execution and advisory services

• It also has a consumer mobile application called WhaleFin for people to buy and trade cryptocurrency

• In February this year, Amber Group reported that its cumulative transaction volume at the time had surpassed US$1 trillion and its assets under management had grown to more than US$5 billion since 2017

• Recently, the company was in the news after the unexpected death of its 30-year-old co-founder Tiantian Kullander, which happened around three weeks after FTX’s fall

What is happening now

• The Financial Times quoted an anonymous employee as saying that 60 staff members lost their jobs across the company’s operations in China’s cities of Shenzhen, Beijing and Shanghai

• The employee said that the layoffs have been happening since June this year, with staff members who are no longer with the company still waiting for severance payment, "which was promised to them by December 5”

• In response to TODAY on Temasek Holding’s plans regarding Amber Group, the investment firm referred to its February statement announcing its investment in Amber Group and its answers last month regarding questions about FTX, but did not give further comment

What Amber Group says

• Amber Group told TODAY that it makes changes to its headcount based on business needs and other operational considerations such as cost and efficiency

• It said that it "cannot comment on specific layoff plans”

• "We make adjustments dynamically and analyse our internal structure and team compositions on a quarterly basis. For now, we can confirm that we are making ongoing headcount and team composition adjustments given our business strategy adjustments,” it added

• It also said that it will continue to service its global high-net-worth and institutional clients

• The company described Asia as its "core market” where it has the most resources, adding that its Hong Kong and Singapore offices are open and operate as usual ― TODAY