Boxing management powerhouse MTK Global dramatically folded on Wednesday as the sport descended into chaos following the sanctions imposed on Daniel Kinahan by the US government.

Sportsmail exclusively revealed on Tuesday night that staff at MTK were braced for the collapse of the company, which was co-founded by Kinahan in 2012 and rose to become one of the biggest in the world with 200 fighters.

It was confirmed on Wednesday afternoon that MTK will 'cease operations' at the end of this month, blaming 'unprecedented levels of unfair scrutiny and criticism', which has centred on whether they retained any ties to Kinahan, who they maintain left the company in 2017.

That stance has long been questioned privately within the sport and it was overtly disputed by US promoter Bob Arum last week, who in attempts to distance himself from the alleged crime lord, said that he would no longer deal with MTK, with the further claim that Kinahan was '100 per cent' still involved in the running of the company.

MTK's implosion will pose challenges for their vast stable of fighters, several of whom have been advised by Kinahan. Prior to shutting down their website on Wednesday – it now contains only a holding statement detailing their closure - MTK listed world champions Tyson Fury, Josh Taylor and Sunny Edwards among their boxers.

Fury, who defends his WBC heavyweight crown against Dillian Whyte at Wembley on Saturday and has faced scrutiny over his enthusiastic endorsements for Kinahan, claimed this week that he hasn't worked with MTK since 2020. He declined to answer on Wednesday when asked by Sportsmail for his reaction to MTK's announcement.

The attention on MTK has cranked up significantly since the US government announced sanctions against Kinahan last week and put a $5m bounty on his head. The Irishman, accused of running the Kinahan cartel, has denied wrongdoing.

In the fallout, Arum said his Top Rank company would no longer deal with Kinahan or MTK, and MTK's CEO Bob Yalen resigned suddenly on Tuesday, citing 'the pressure' of recent weeks. 

That was followed by Sportsmail's report that promotional company Probellum, who themselves have faced questions over links to Kinahan, have ordered their fighters to sign a declaration that they will no longer have any association with MTK or Kinahan. Probellum insist Kinahan is not involved in their business.

With the boxing world turning away from MTK, Sportsmail understands Sky Sports was also considering taking the step of not including any MTK fighters in forthcoming broadcasts.

The combined pressure from around the sport was cited by MTK on Wednesday, with a statement that read: 'As a business we have faced unprecedented levels of unfair scrutiny and criticism since the sanctioning by the US government of Daniel Joseph Kinahan.

'It is a matter of public record that Mr Kinahan's involvement in MTK ceased in 2017, and despite repeated reassurances in this regard, unfounded allegations about his ongoing association with us and our fighters persist.

'Since leading promoters have now informed us that they will be severing all ties with MTK and will no longer work with our fighters, we have taken the difficult decision to cease operations at the end of this month.

'MTK prospered because we always put the long term interest of our fighters at the heart of what we do. Our priority in the weeks ahead will be to ensure that our world class boxers are supported to find new partnerships as swiftly as possible.

'MTK gyms are operated independently so will remain open for the foreseeable future. Further announcements will be made in due course. Thank you to all the fans who have supported us over the last decade.'