Thousands of Americans see their savings vanish
From CNBC: 2024-11-22 10:00:01
Former Texas schoolteacher Kayla Morris and thousands of other customers were affected by the collapse of fintech firm Synapse, leaving them locked out of their accounts for six months and with little hope of recovering their funds. The bankruptcy resulted in up to $96 million of missing customer funds.
Customers like Morris and Zach Jacobs, who lost over $94,000, formed a group called Fight For Our Funds to raise awareness and seek help. Despite assurances of FDIC insurance, customers were left stranded as regulators declined to intervene, leaving them with few options to recoup their money.
As the bankruptcy proceedings unfolded, some customers received partial payments while others received nothing. Evolve Bank, where the funds were supposed to be held, only returned a fraction of what customers had deposited. The situation has led to lawsuits and finger-pointing among the banks involved, with little optimism for a resolution in sight.