Overview
- 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.