Digital payment facilitator, Visa has ended all ties with the FTX cryptocurrency exchange, following a series of negative events happening to the exchange. The termination announcement was made known earlier by the company’s Crypto Head of Department, Cuy Sheffield.
Visa Terminates Partnership With FTX, In Less Than 2 months
The crypto debit card partnership deal was signed between FTX and VISA, during the first week of October. Following the exchange card partnership announcement in October, the card was rolled out to over 40 countries, starting from Latin America. However, during a press release, the Financial Technology head of cryptocurrency, Cuy Sheffield revealed that the debit card company was at an edge and the only option was to end the partnership.
“We have been at a close range, monitoring the series of events revolving around the FTX exchange, which have been quite unfortunate. We are pushed to an edge and the best we would do is to terminate our global partnership with FTX and the United States cryptocurrency debit card issuance”.
Cuy Sheffield also reiterated that the virtual payment company enjoyed its collaboration with the exchange. However, severing their ties was a necessity that couldn’t be evaded. “We are delighted with our partnership with one of the largest crypto exchanges globally.
During our short-term partnership, we brought about pliability and easiness for users to expend their virtual assets funds. Users could easily spend from their crypto assets and funds from any part of the world, where Visa is authenticated, these are our wins” Cuy Sheffield concluded.
Companies Terminating Their Collaboration Deals With FTX
After the crypto exchange filed for bankruptcy protection last week, most of its affiliated/partnering entities have deserted the firm to its hard times. The collapsing crypto exchange has been left to face its loss and crumbles alone.
The Visa termination deal announcement from the payment facilitator company was received with mixed reactions as the deal was signed less than two months ago. Before the collapse of the exchange, the global deal between itself and the virtual card company, VISA to allow the usage of the virtual card in different countries across continents was to span for years.
Visa has not been the only company severing their connections and deals with FTX, a rival crypto exchange, Binance also terminated an acquisition deal with the exchange. Binance C.E.O, Zhao Changpeng stated that the acquisition was terminated due to a rumored investigation from the U.S. SEC and CFTC.
Also, a National Basketball Association team, Miami Heat, and Miami-Dade County have ended a 19-year deal with the exchange. The long-term collaboration worth over $100 million was signed by the NBA team and FTX, giving the naming rights of its arena to the exchange in 2021. However, the NBA teams ripped off their agreement after the exchange filed for bankruptcy.