Visa cuts ties with FTX: Global debit card program defunct?

Sahana Kiran
Source – Unsplash

The crypto industry witnessed the downfall of the FTX empire throughout last week. Following this, an array of platforms severed ties with the crypto exchange and its founder Sam Bankman Fried. Prominent payments processor, Visa was the latest one to do so.

The payments giant went on to terminate its agreements with the troubled crypto exchange. Visa and FTX entered a partnership back in October. Through this, the firm aimed to roll out debit cards in over 40 countries that allowed crypto payments.

A Visa spokesperson commented about the same and said,

“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.”

As mentioned earlier, Visa wasn’t the only platform that was limiting its association with FTX.

Here’s how Kraken has been dealing with the collapse of FTX

Earlier today, prominent crypto exchange Kraken revealed it froze all accounts related to “FTX Group, Alameda Research, and their executives.” The exchange decided to do so after consulting authorities.

The exchange took to Twitter and affirmed that customers of Kraken were untethered by the collapse. Yet, the exchange would freeze the aforementioned accounts in order to safeguard their creditors.

The last week has been nothing less than chaotic. From bankruptcy filing to the exchange’s CEO Sam Bankman-Fried resigning as the CEO, FTX users continued to grow wary of their funds. FTT on the other hand dropped to a low of $1.29. The persistence of the ongoing drama is likely to push the asset below $1.

To add to this, a hack on the troubled platform elevated fear among the community. It should be noted that the suspected hack involved a Kraken account. While this seems to be an FTX problem, Kraken was seen steering away from the sinking platform.