Visa has terminated the debit card program with FTX due to recent insolvency and bankruptcy issues one month after announcing its partnership.
FTX’s liquidity issues were triggered last week when Binance CEO Changpeng Zhao announced that Binance would liquidate the entirety of its FTX Token holdings, which inadvertently led to a bank run that brought on FTX liquidity issues.
When the news of FTX and Visa’s partnership circulated online, the native cryptocurrency of the FTX trading platform, FTT, spiked by about 7%, reaching a high of $25.62. After the recent turn of events, FTT is currently trading at $1.89.
Things have quickly spiralled for the once reputable crypto currency exchange, FTX, and it comes as no surprise that companies like Visa, are working to distance themselves from the disgraced platform.
Visa is not the only company severing ties with FTX. The Securities and Exchange Commission of Cyprus, reportedly issued a statement amid FTX’s filing for Chapter 11 bankruptcy in the United States requesting the exchange halt operations for its Europe arm.
In another instance, Plaid, the fintech company which facilitates communication between financial services apps, and users’ banks and credit card providers, suspended FTX U.S access to its products, with relation to concerning public reports of fraudulent activity.
