Visa Terminates Agreements With Bankrupt Crypto Exchange FTX

Visa has reportedly terminated its global agreements with collapsed cryptocurrency exchange FTX and its U.S. arm, FTX US. The payments giant added that FTX’s “U.S. debit card program is being wound down by their issuer.”

Visa Inc., the world’s leading payments processor, reportedly said Sunday that it has ended global agreements with bankrupt crypto exchange FTX. A Visa spokesperson told Reuters:

We have terminated our global agreements with FTX and their U.S. debit card program is being wound down by their issuer.

“The situation with FTX is unfortunate and we are monitoring developments closely,” the representative added.

Visa and the companies behind FTX.com and FTX US announced “a long-term global partnership” in early October. “As a part of the alliance, FTX will begin by offering FTX-branded Visa debit cards to FTX customers internationally,” the announcement detailed, adding that while the debit cards are currently only available in the U.S., they “are now being rolled out globally in over 40 additional countries.”

FTX filed for Chapter 11 bankruptcy on Friday and Sam Bankman-Fried stepped down as the CEO after Binance decided not to proceed with the acquisition of the firm.

The exchange is reportedly being investigated by the U.S. Department of Justice (DOJ), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) for allegedly mishandling client funds.

What do you think about Visa terminating agreements with the embattled crypto exchange FTX? Let us know in the comments section below.