From CNBC: 2024-05-22 15:21:44

A fintech startup, Synapse, faces disputes with banking partners, leading to frozen funds for millions of Americans. Users like Chris Buckler and Joseph Dominguez are stranded, fearing lost deposits. Regulators have yet to intervene as customers plead for help in a complicated financial tech meltdown that exposes banking vulnerabilities.

The company’s abrupt shutdown of essential systems has left customers like Buckler, who had $38,000 locked in his Juno account, in despair. With 10 million end users affected, the BAAS partnership model faces scrutiny, highlighting the need for regulatory oversight in the rapidly growing fintech industry.

Regulators remain uninvolved as millions of customers face uncertainty and potential financial losses due to the Synapse banking crisis. Buckler and other impacted individuals plead for assistance, shedding light on the risks associated with fintech failures and the lack of protection for consumers in the event of such emergencies.

As the banking crisis unfolds, customers like Buckler warn others of the dangers of relying solely on fintech services, emphasizing that while traditional banks may be safe, fintech failures can have significant consequences on individual finances. The situation highlights the need for increased oversight and protection for consumers in the ever-evolving fintech landscape.

Read more: Customers say they can’t access funds