Bankruptcy of Synapse Freezes Thousands of Fintech Accounts

Financial middleman Synapse's collapse disrupts access to funds for hundreds of thousands of users, highlighting vulnerabilities in fintech partnerships.

• Synapse's bankruptcy has led to frozen accounts for fintech customers using services like Yotta, Juno, and Copper.
• A dispute between Synapse and Evolve Bank & Trust has left customers unable to access their money since May 11.
• Despite a court order, Synapse has not restored access to a critical dashboard needed to manage accounts.
• The Federal Reserve and other regulators have limited authority to intervene in the fintech dispute.
• Consumer advocates warn that the situation underscores the risks of unregulated fintech architectures.

4 Articles

The American Prospect Financial Post Associated Press CNBC