Worldwide payment processor Visa announced the termination of its global credit card agreements with foreign exchange platform FTX after it filed for bankruptcy.
A Visa spokesman told Reuters that the global agreements have been terminated, as well as its US debit card program. “The situation with FTX is unfortunate and we are closely following developments” , he said.
FTX and Visa expanded their partnership in the month of october. The agreements included plans to introduce Visa debit cards associated with accounts in 40 new countries.
The last friday 11 of November FTX joined the chapter 11 from US bankruptcy law after a week of tumult for the exchange, where Bitcoin, the most valuable cryptocurrency, collapsed 75% of its historical value of $69,000 reached in November 2021.
Company founder Sam Bankman-Fried said that one of his mistakes was mislabeling in accounts associated with the bank. FTX is facing a shortfall of around $9,400 million dollars which has led to the US Department of Justice begins an investigation into the use of the funds.
In an attempt to rescue FTX, the Binance exchange tried to buy it. However, FTX’s strong passive-active gap led to it finally stepping aside.
Bankman-Fried experienced a sudden loss of $40,000 millions of dollars to zero in a week. After the declaration of bankruptcy he resigned from his position as executive director.
Since then several companies have terminated their relations with FTX. In the sporting arena, Mercedes removed the logo from the platform of its Formula 1 cars and its merchandise. Meanwhile, Miami-Dade County has withdrawn the name FTX gave to the arena where the Miami Heat NBA team plays.
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