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The world’s largest payment processor – Visa – ended its ties with FTX less than a month after introducing a new debit card program.
Deeming the situation with the debt-ridden cryptocurrency exchange “unfortunate”, the Visa spokesperson told Reuters the company is “monitoring developments closely”.
- The official statement from the financial services company said,
“We have terminated our global agreements with FTX and their US debit card program is being terminated by their issuer.”
- In October this year, Visa announced a collaboration with FTX to launch account-linked Visa debit cards in 40 new countries.
- The partnership's goal was to expand the debit card program into Latin America, Asia, and Europe after it was introduced to US customers.
- FTX and 130 affiliates, including its sister trading company Alameda Research, filed for Chapter 11 proceedings in the United States on November 13.
- Sam Bankman-Fried has stepped down as CEO of the company. His position was taken over by veteran Wall Street bankruptcy attorney John J. Ray III, who notably served as chairman of the disgraced energy giant – Enron – in the early 2000s.
- SBF, on the other hand, faced massive backlash from the crypto community as the drama unfolded over the past week.
- FTX started the year with a $400 million Series C funding round, bringing its valuation to over $32 billion.
- In another related development, US-based cryptocurrency exchange Kraken announced the freezing of accounts associated with “FTX Group, Alameda Research and their executives” after engaging with security forces. order.
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