Visa has officially ended its strategic partnership with now-bankrupt crypto exchange FTX, Reuters reported on Monday.
A Visa spokesperson said as quoted by Reuters: “The situation with FTX is unfortunate and we are monitoring developments closely. We have terminated our global agreements with FTX and their U.S. debit card program is being wound down by their issuer.”
Fintech firm Plaid also suspended FTX US’s access to its services over what it states were “concerning public reports” of fraud.
The news comes just a month after FTX launched the deal allowing users to receive debit cards in 40 countries worldwide. Following the announcement, FTX’s native cryptocurrency FTT skyrocketed roughly 7 percent, or up to $25.62.
Last week, Binance chief executive Changpeng Zhao (CZ) revealed he would liquidate the company’s holdings of FTT, triggering a huge bank run and liquidity crisis for the troubled exchange.
The withdrawals led to an impending collapse for FTX, namely after it entered a non-binding letter of intent with Binance for the latter to acquire the former. The deal fell through after Binance pulled out of the offer, citing compliance issues with FTX.
