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Friday, February 3, 2023

Amber Group Cancels Expansion

Hong Kong-based cryptocurrency trader Amber Group has denied reports of bankruptcy and a mass layoff. The company, which had intended to expand into the U.S., has now abandoned its plans. Amber Group has issued a statement denying reports of bankruptcy, mass layoffs, and the closure of its Shanghai office.

Last week Cointelegraph reported on allegations that Amber Group was shutting down its Shanghai office in China’s financial hub on Oct. 15 after being confronted with a significant loss of clients’ assets due to alleged embezzlement by a former employee.

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Amber Group has denied reports that it has declared bankruptcy and laid off employees, calling the claims “irresponsible and defamatory.”

Amber Group Looking For Positivity

The Hong Kong-based cryptocurrency trader is one of many companies being hit by a wave of withdrawals from customers due to the increasing tightening of Chinese capital controls since March 2019. The company said in a statement: “This is an irresponsible rumour spread on social media by malicious competitors, which should be treated as such. Amber remains solvent, with sufficient funds to meet all obligations in full and on time.”

According to the executive, the company has decided not to expand into the U.S. due to tightening of Chinese capital controls.

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Amber Group had previously announced that it would be using its investment in two U.S.-based companies as a means of expanding its reach across the Atlantic Ocean, but this development seems to have dashed those plans indefinitely.

Amber Group has issued a statement denying reports of bankruptcy, mass layoffs and the closure of its Shanghai office.

Amber said it is not bankrupt and denied rumors that it is unable to make payments to customers. The company also denied reports that it has laid off all its employees or shut down its Beijing office, which was previously reported by other media outlets to have been closed down due to rumors of insolvency.

According to Amber, the rumor was irresponsible and defamatory against the firm’s name since most customers did not withdraw funds due to the rumor.

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