Cryptocurrency exchange FTX said on Friday that it was commencing bankruptcy proceedings in the United States and Sam Bankman-Fried was resigning from his role as chief executive officer.

The company has filed for Chapter-11 bankruptcy in the US, which allows for the restructuring the company and prioritises creditors. 

Mr Bankman-Fried’s Alamedia Research and 130 other affiliated companies of FTX have also filed for bankruptcy. 

According to the filing in a court, Alameda Research has listed assets and liabilities in the range of $10 billion to $50 billion.

FTX’s move to opt for bankruptcy comes days after larger rival Binance had 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. 

These developments fan concerns about the future of the cryptocurrency industry, which faces an uphill task of regaining favour among retail investors after several blowups this year.