KEY POINTS
- Thousands of Americans will receive little or nothing from savings accounts that were locked during the collapse of fintech middleman Synapse.
- Customers believed the accounts were backed by the full faith and credit of the U.S. government.
- CNBC spoke to a dozen customers caught in the predicament, people who have lost sums ranging from $7,000 to well over $200,000.
- While there’s not yet a full tally of those left shortchanged, at fintech Yotta alone, 13,725 customers say they are being offered a combined $11.8 million despite putting in $64.9 million in deposits.
If you’re in the UK check FSCS to see if your money is protected.
Just an FYI, don’t put 200k into a financial startup. It might be a surprise, but a lot of tech bros are just out to grift people out of money.
Honestly I have a lot of sympathy for these people.
It’s one thing to invest in some moonshot crypto. It’s another to invest in something claiming to be FDIC insured. There’s also not a good way of verifying that information to the extent the victims would have needed to know something was amiss.
It seems like the FDIC was asleep at the wheel, and didn’t really know or give a shit that someone was leveraging them to mislead consumers. Instead of actually fixing the problem, they just washed their hands of it.
You can call Trump the devil all you want, but the system was broken long before he came on the scene.
I’m sorry this happened. I’m concerned that further deregulation and dismantling of consumer or protections will make this even worse.
Good news, there will be an absolute fuck-ton of further deregulation and dismantling of consumer protections over the next four years!
Four? Hah… you make me laugh. He’s never leaving
Why are you WORRIED about FURTHER Deregulation of your Money so that THIS EXACT SCENARIO can Happen to you too? You must be a SOCIALIST! I cant WAIT for Trump to Deregulate my Money so Banks can LOSE it All!
This sucks big time. Real question, what motivated people to put huge sums of money into a startup company? Some deal on a loan?
not a huge sum, but I had $10k in it, because it was a fun bullshit app that scratched the lottery itch despite it earning less than regular interest over my time with it
What was the lottery aspect? Damn $10k to just play with. That’s a different kind of life.
