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A Visa spokesperson confirmed to Cointelegraph that the company has terminated its contracts with FTX. Thus, it closes the FTX payment card program.
Just one month after Visa announced a partnership with FTX to launch payment cards in 40 countries around the world, the company abruptly shuts down the program. Reason? FTX insolvency and bankruptcy problem.
FTX's liquidity problems began when BINANCE CEO Changpeng "CZ" Zhao announced that his exchange would sell all of its FTT tokens, which in turn led to investor panic, which in turn caused FTX's liquidity problems.
In October, when information about the partnership between FTX and Visa appeared on the Internet, the token of the trading platform, FTT, went up by about 7%, reaching a high of USD 25.62. Currently, 1 FTT costs $1.89.
Other FTX issues
Visa is not the only company breaking cooperation with FTX.
The Cyprus Securities and Exchange Commission (CySEC) issued a statement in connection with FTX's bankruptcy filing, requesting that the company's European branch stop trading operations.
In turn, Plaid, a fintech company that facilitates communication between applications from the financial services market and banks, users and credit card providers, has suspended access to FTX U.S. to its products, citing "public reports" of the company's fraud.
Recall that former FTX CEO Sam Bankman-Fried, company co-founder Gary Wang and CTO Nishad Singh are in the Bahamas and "under surveillance" of the authorities.
"At the moment three of them, Sam, Gary and Nishad, are under surveillance in the Bahamas. Which means it will be difficult for them to escape", said the informant, who asked to remain anonymous. “I just got word that they are trying to find a way to get to Dubai, which has no extradition treaty” he added.
