Just one month after payment giant Visa announced a partnership with FTX to roll out a debit card program in 40 countries around the world, Visa abruptly ended the program. due to FTX’s recent insolvency and bankruptcy issues.
FTX liquidity problems were triggered last week when Binance CEO Changpeng “CZ” Zhao announced that Binance would liquidate its entire holding of FTX Token (FTT), which inadvertently led to a bank run that caused FTX’s liquidity problems.
In October, when news of the FTX-Visa partnership circulated online, the FTX trading platform’s native cryptocurrency, FTT, shot up around 7%, peaking at $25.62.. Following the recent turn of events, FTT is currently trading at $1.89.
Things have been picking up quickly for cryptocurrency exchange FTX, and it’s no surprise. that companies like Visa are working to distance themselves from the disgraced platform.
“The situation with FTX is unfortunate and we are closely monitoring developments. In all of our businesses – in the digital currency and beyond – our focus on safety and trust remains paramount. We have terminated our global agreements with FTX, and their US debit card program is being wound up by their issuer,” a Visa spokesperson told Cointelegraph..
Visa isn’t the only company breaking ties with FTX. On Nov. 11, Cointelegraph shared that The Cyprus Securities and Exchange Commission, or CySEC, reportedly issued a statement amid FTX’s Chapter 11 bankruptcy filing in the United States, requesting that the exchange halt operations of its Europe arm..
On the other hand, Plaid, the fintech company that facilitates communication between financial services apps and users’ banks and credit card providers, has suspended FTX US’s access to its products, citing “troubling public reports” of fraudulent activity..
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