Though none of the firms provided concrete details as to why they chose to leave the project in statements given to the FT, it's likely the decisions were tied to increased regulatory scrutiny: The US Treasury Department reportedly requested a full overview of money laundering programs from some backers and US senators reportedly pushed payments firms to abandon the project.
As key players exit the project in rapid succession, it's unclear if — and how — Libra will proceed. Last week, we noted that as a major and visible partner of Libra, PayPal's decision to distance itself could begin a domino effect that ultimately pushes any other firms feeling uncertain to do the same, and it looks like that's starting to happen.
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