Cryptocurrency exchange FTX said on Friday it was commencing bankruptcy proceedings in the United States and Sam Bankman-Fried is resigning from his role as chief executive officer.
The move comes days after larger rival Binance walked away from a proposed acquisition and left it scrambling to raise about $9.4 billion from investors and rivals.
The embattled company was seeking a lifeline after a liquidity crunch due to customers withdrawing funds at a frenetic pace.
It also fans concerns about the future of the crypto industry, which faces an uphill task of regaining favor among retail investors after several blowups this year. (Reporting by Niket Nishant in Bengaluru and Dietrich Knauth in New York; Editing by Sriraj Kalluvila and Arun Koyyur)