Well, as long as he didn't do anything to you, I don't see the need for you to cut him off completely. And, as you mentioned, you were there for him in his down times and also he has done good for you.

It's not haraam. But, you must remember to surround yourselves with people who you deem to add value in you're life, or that you will benefit. Here, I see that because you said the guy has been there for you and vice versa.

But, because you didn't say the backstory, we don't know. And do whatever you like, but it's not haram.

He’s very upset with me because I don’t hang out with him anymore...

Tell him kindly, you got things to do and he"ll get the hint.