Overview

• Filed as an adversary complaint on Aug. 21 in Synapse’s Chapter 11 case, the CFPB seeks a stipulated judgment that would enable Civil Penalty Fund payments.
• The bureau alleges Synapse committed unfair acts under the Consumer Financial Protection Act by keeping inadequate records that did not match partner‑bank ledgers.
• The shortfall is estimated at $60 million to $90 million, aligning with a trustee finding that roughly $85 million in customer funds could not be accounted for.
• Requested relief includes consumer redress, permanent injunctions, a nominal $1 civil money penalty, and a court order barring any sale of customer information.
• Discrepancies spanned partner banks including Evolve, AMG National Trust, and Lineage, leaving customers of fintechs such as Yotta, Juno, and Copper without access to money for weeks or months.