Sam Bankman-Fried’s crypto empire filed for Chapter 11 bankruptcy in Delaware on Friday, capping a rapid downfall for the companies.

Entities tied to FTX.com, FTX US and trading firm Alameda Research Ltd were part of the filings, a Twitter statement said on Friday. Chapter 11 bankruptcy lets a company continue operating while it works out a plan to repay creditors.

Mr Bankman-Fried resigned as chief executive as part of the filings, and John Ray III was appointed to replace him, the statement said.

Crisis quickly befell FTX this month after prices for the exchange’s native crypto token, FTT, plummeted and users raced to withdraw their assets. Rival crypto exchange leader Changpeng CZ Zhao had earlier said he would sell some $529 million (€514 million) of FTT coins due to “recent revelations that came to light”.

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Mr Zhao’s Binance Holdings tentatively agreed to buy FTX.com amid the exchange’s liquidity crunch on Wednesday, but backed out of the deal following a short period of due diligence. – Bloomberg