Visa has severed ties with FTX as the crypto exchange filed for bankruptcy on Friday, and the company"s board looks out of depth to handle the current situation.
"We have terminated our global agreements with FTX and their U.S. debit card program is being wound down by their issuer" said a Visa spokesperson to Reuters. "The situation with FTX is unfortunate and we are monitoring developments closely", they added.
The crypto debit card was launched barely a month ago in more than 40 countries. The debit cards were linked to a user"s FTX account and allowed users to pay for goods and services with their crypto balance from their FTX wallet at more than 80 million merchant locations worldwide that accept Visa. The transactions weren"t subject to any administrative or processing fees.
FTX is also currently investigating "abnormalities" on its platform after the exchange saw mysterious outflow transactions on Friday evening.
Before its downfall, FTX was the second-largest crypto exchange in the world. Some other exchanges including BlockFi also had significant exposure to FTX and the company"s downfall could also cause their failure too.
Source: Reuters