Visa Discontinues FTX Debit Card Service

The Bahamas’ securities regulator and financial detectives are investigating alleged fraud at FTX.

Visa, the biggest payment processor in the world, severed relations with FTX less than a month after launching a new debit card program.

Visa’s representative told Reuters that the business is “closely watching” the situation with the debt-ridden cryptocurrency exchange, which he described as “unfortunate.”

The official announcement from the financial services organisation said, “We have terminated our worldwide relationships with FTX, and their issuer is winding down its U.S. debit card program.”

In October of this year, Visa and FTX announced a partnership to introduce account-linked Visa debit cards in 40 additional countries.

The primary objective of the cooperation was the extension of the debit card program throughout Latin America, Asia, and Europe after its launch to US clients. On November 13 in the United States, FTX and 130 related entities, including its sister trading company Alameda Research, filed for Chapter 11 Proceedings.

Sam Bankman-Fried has resigned as the company’s CEO. John J. Ray III, a prominent Wall Street bankruptcy attorney who served as the chairman of the infamous energy giant Enron in the early to mid-2000s, assumed his role.

As last week’s event evolved, SBF experienced massive criticism from the cryptocurrency community. FTX began the year with a Series C investment round of $400 million, bringing its worth to over $33 billion.

In a similar incident, the US-based cryptocurrency exchange Kraken froze the accounts of “FTX Group, Alameda Research, and their respective CEOs” after interacting with law enforcement authorities.

Also Read: The Crypto Exchange Binance Will Introduce A New “Industry Rehabilitation Fund”