this post was submitted on 22 Nov 2024
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'I have no money': Thousands of Americans see their savings vanish in Synapse fintech crisis (www.cnbc.com)
submitted 2 months ago by [email protected] to c/business
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[–] [email protected] 27 points 2 months ago* (last edited 2 months ago) (2 children)

Not trying to victim blame here as best I can, but why on earth would you use a bank that isn't a bank that relies on other banks to pretend to be a bank? Just use a bank. Not Wells Fargo.

I see commercials for these things and they just seem like scams. Payday loan levels of bullshittery.

[–] [email protected] 17 points 2 months ago (2 children)

And even if you do, why on earth would you keep your money there when they lay off half their staff (more than a year ago) and then file for bankruptcy (more than 6 months ago)?

[–] [email protected] 4 points 2 months ago (1 children)

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.
[–] Anticorp 1 points 2 months ago (1 children)

Okay, is anyone going to jail, or are they just going to walk away Scott free with everyone's money?

[–] [email protected] 2 points 2 months ago (1 children)

There is a group for the victims trying to get their money back but don't hold your breath waiting for justice.

[–] Anticorp 1 points 2 months ago

I've seen that movie! Fun with Dick and Jane. Great movie!

[–] [email protected] 1 points 2 months ago

Most people don't follow news like that.

[–] [email protected] 9 points 2 months ago (1 children)

credulity. Here in the US we are well insulated from financial scammers, with the exception of fintech. When the average consumer sees FDIC they assume they are covered. Insane that $50m has evaporated. Fintech bros are the worst.

[–] Anticorp 2 points 2 months ago (1 children)

Wait, they advertised as FDIC insured and weren't?

[–] [email protected] 2 points 2 months ago (1 children)

Yeah. Said the money was in FDIC banks. Maybe it was, for a minute.

[–] Anticorp 2 points 2 months ago (1 children)

Okay, that's a crime. Someone better go to prison.

[–] farcaster 2 points 2 months ago (1 children)

They stole from the non-wealthy. Slap on the wrist, if anything.

[–] Anticorp 2 points 2 months ago (1 children)

Sad but true. Queue Metallica solo.

[–] farcaster 2 points 2 months ago (1 children)

... And Justice For All

[–] Anticorp 2 points 2 months ago

Don't tread on me!