Cryptocurrency exchange FTX has filed for bankruptcy in the US, seeking court protection as it searches for a way to return money to users.
Former boss Sam Bankman-Fried has also resigned as chief executive, the company said.
This is seen as a massive reversal of fortune for the 30-year-old, who had been running the world’s second largest cryptocurrency company.
“I’m very sorry, again, that we ended up here. Hopefully things can find a way to recover,” Bankman-Fried, nicknamed the “King of Cryptos,” tweeted on Friday.
Before that, Bankman-Fried had been one of the stars of the crypto scene, drawing comparisons to investment magnate Warren Buffett, with an estimated net worth of more than $15 billion as of Monday.
But rumors earlier this week that FTX and other firms owned by Mr. Bankman-Fried were on shaky financial ground prompted a flurry of clients to try to withdraw funds from FTX, an exchange used to buy and sell “coins digital”.
By filing for bankruptcy, the company can continue to operate while it restructures its debts under court supervision.
FTX said the goal was to “begin an orderly process to review and monetize assets for the benefit of all global stakeholders.”