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The world’s largest payment processor, Visa, ended its ties with FTX in the wake of bankruptcy filings in the US.
The recent alliance between FTX and Visa has come to an end. As FTX is facing Chapter 11 bankruptcy filings, Visa Inc. decided to end their relationship. In October 2022, the two large entities made an agreement to provide Visa debit cards to FTX users across 40 countries.
“We have terminated our global agreements with FTX, and their US debit card program is being wound down by their issuer.”
FTX, the world’s second largest crypto exchange platform, valued at $32 billion (USD), was facing severe losses. The United States Securities and Exchange Commission (SEC) has started an investigation on how FTX manages the users’ funds and its crypto lending activities. Now the regulators are examining whether FTX maintained securities laws by keeping users’ crypto assets separate or whether it traded against the users.
“Every time a major player in an industry fails, retail consumers will suffer. “We have seen over the last several years that the crypto ecosystem is becoming more resilient, and we believe that in time outliers that misuse user funds will be weeded out by the free market.”
One Of The FTX Investors Shared His Views On Bankruptcy
“It is not the first time I have made a bad investment, and probably not the last, but luckily I make more good ones than bad ones, and I learn from my mistakes.”
Kevin O’Leary, the chairman of O’Shares and Beanstok recently revealed his post-bankruptcy investments in FTX. Kevin holds an equity stake in the FTX crypto exchange and recently signed a deal to become an ambassador and spokesperson for FTX. He stated that the FTX downfall was an unacceptable situation, but it is common for investors to face both losses and profits.
“As an investor, you will never get it right every time. You will make some mistakes. Sometimes big ones like FTX. The point is to learn from them so you don’t repeat. Over time experience will get you to a place where you make more good investments than bad.”
Kevin also stated that it is the time to implement regulations for the cryptocurrency industry. If the administration doesn’t take any action towards crypto regulations, there is a possibility that other digital assets will face the same situation as FTX in the crypto market. “The entities will not invest until the industry gets regulated, whether by the SEC or other regulators.”
“What I am going to be doing is I am going to fly to Washington and I want regulation. I want it now. No more delaying. I think this puts tremendous pressure on the SEC.”
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
