Visa cancels the global FTX Debit Card agreement

Visa’s spokesperson told Reuters that the situation with FTX crypto exchange is “unfortunate” and that the company is “monitoring developments closely.”

Visa, the world’s largest payment processor, has severed ties with FTX less than a month after launching a new debit card program.

In October 2002, Visa announced a partnership with FTX to launch account-linked Visa debit cards in 40 new countries.

Following its introduction to US customers, the partnership focused on expanding the debit card program to Latin America, Asia, and Europe.

On November 13, 2022, FTX and 130 affiliated companies, including sister trading firm Alameda Research, filed for Chapter 11 proceedings in the United States.

Sam Bankman-Fried, the company’s CEO, resigned. John J. Ray III, a veteran Wall Street bankruptcy lawyer who notably served as the chairman of the energy behemoth Enron in 2000, took over his position.

The company began the year with a $400 million Series C funding round, raising its valuation to more than $32 billion.

In a related development, the US-based cryptocurrency exchange Kraken announced the freezing of accounts associated with “FTX Group, Alameda Research, and their executives” after working with law enforcement.