Nov 15, 2022 12:18 UTC
Nov 15, 2022 at 12:18 UTC
Visa terminates debit card program with FTX
A Visa proponent confirmed to Cointelegraph the company has terminated its world agreements with FTX.
Only a month after large payments Visa declared a partnership with FTX to roll out a debit card program in forty countries worldwide, Visa had to complete the program because of FTX‘s recent financial condition and bankruptcy problems.
FTX’s liquidity problems were triggered last week once Binance business executive Changpeng “CZ” Zhao declared that Binance would liquidate the whole lot of its FTX Token (FTT) holdings, that unknowingly LED to a bank withdrawal that brought on FTX liquidity problems.
In October, once the news of FTX and Visa partnership circulated on-line, the native cryptocurrency of the FTX commercialism platform, FTT, spiked by 7%, reaching a high of $25.62. Once the recent flip of events, FTT is presently commercialism at $1.89.
Things have quickly spiraled for the once good cryptocurrency exchange FTX, and it comes as no surprise that firms like Visa are operating to distance themselves from the bad platform.
“The state of affairs with FTX is unfortunate and that we are watching developments closely. altogether our undertakings—in digital currency and beyond—our specialization in security and trust remains predominant. we’ve terminated our world agreements with FTX and their North American country open-end credit program is being wound down by their establishment,” a Visa proponent told Cointelegraph.
Visa isn’t the sole company cutting ties with FTX. On Nov 11, Cointelegraph shared that The Securities and Exchange Commission of Cyprus, or CySEC, reportedly issued an announcement amid FTX’s filing for Chapter eleven bankruptcy within the US requesting the exchange halt operations for its Europe arm.
In another instance, Plaid, the fintech company that facilitates communication between monetary services apps, and users’ banks and mastercard suppliers, suspended FTX US access to its merchandise, citing “concerning public reports” of dishonest activity.