Mayhem in the crypto sector continues to wreak havoc on digital tokens, as lender Amber Group will terminate its sponsorship agreement with English soccer giant Chelsea, according to a Bloomberg report.
Amber, valued at $3 billion in a February fundraising round, will end the deal as part of cost-cutting measures, the Bloomberg report said, citing people familiar with the matter. The firm plans to lay off 300 of the Singapore-based group’s 700 members of staff.
In March, Amber agreed to pay 20 million pounds ($25 million) for its flagship crypto exchange WhaleFin to become Chelsea’s official sleeve sponsor.
Crypto companies are struggling following the collapse of crypto giant FTX in November. Many businesses are cutting costs in an attempt to ensure their survival.
As digital asset prices skyrocketed last year, crypto companies sealed sponsorship deals with top sports franchises.
FTX itself backed out of a deal to provide jersey patches to the MLB’s Los Angeles Angels in June, according to the New York Post.