Posted on 06/14/2024 6:28:47 AM PDT by george76
For three weeks, 85,000 Yotta customers with a combined $112 million in savings have been locked out of their accounts, CEO and co-founder Adam Moelis ...
The disruption, caused by a dispute between fintech middleman Synapse and Tennessee-based Evolve Bank & Trust, has upended lives...
“We never imagined a scenario like this could play out and that no regulator would step in and help,” .
...
his company has been a source of deep pain for thousands of customers who relied on Yotta accounts to receive paychecks, pay bills and save for emergencies.
The crisis began May 11, when a dispute between two of Yotta’s banking partners — fintech middleman Synapse and Tennessee-based Evolve Bank & Trust — led to the lockup of accounts at Yotta and at least two dozen other startups. Synapse declared bankruptcy earlier this year after several key clients abandoned the firm amid disagreements over the tracking of customer funds.
For the past three weeks, 85,000 Yotta customers with a combined $112 million in savings have been locked out of their accounts, Moelis told CNBC. The disruption had upended lives, forced users to borrow money for food and thrown upcoming events like surgeries or weddings into doubt,..
...
We never imagined a scenario like this could play out and that no regulator would step in and help.”
Boom & bust..
..
The so-called “banking as a service” model allowed consumer fintech companies to quickly launch savings accounts and debit services, with firms like Synapse acting as a bridge between the startups and FDIC-backed banks that ultimately held deposits.
...
Money doesn’t just disappear’
(Excerpt) Read more at cnbc.com ...
btt
Might as well deposit your money at Fred’s Bank.
“Hi, I’m Fred, I have a bank....You got $1500, I’ll put it ahhhh right here in my white suit....White suit, front pocket!”
It can today. It can also appear. Just ask the US Congress.
LOL! Can’t get to a credit union for an account?
The “unbanked” just got further “unbanked.”
All these new bank and cash transfer “apps” are great - until you realize that they have absolutely no security and can easily be hacked.
Is Hillary strutting new a new tarp?
This is why I bank at a credit union with multiple physical offices.
“… The money doesn’t just disappear; it has to be somewhere.”
The only money that matters is what was in an actual bank or credit union where savings accounts were being insured.
Any other place that had no insurance is solely responsible for the monies they left “in transit” or “at rest,” outside of those insured entity locations.
That money, former FDIC lady, is what could be “disappeared.”
big election right around the corner & SBF & his uke/crypto skam is out of business. gotta take up the slack from somewhere???
excerpt:
his company has been a source of deep pain for thousands of customers who relied on Yotta accounts to receive paychecks, pay bills and save for emergencies.
The crisis began May 11, when a dispute between two of Yotta’s banking partners — fintech middleman Synapse and Tennessee-based Evolve Bank & Trust — led to the lockup of accounts at Yotta and at least two dozen other startups. Synapse declared bankruptcy earlier this year after several key clients abandoned the firm amid disagreements over the tracking of customer funds.
For the past three weeks, 85,000 Yotta customers with a combined $112 million in savings have been locked out of their accounts, Moelis told CNBC. The disruption had upended lives, forced users to borrow money for food and thrown upcoming events like surgeries or weddings into doubt,..
The whole financial industry is disgustingly complicated. Like the tax code, I believe it’s all intentional. I’ve only dipped my toes into the water on a few fronts, like doing e-commerce, and it’s just ridiculous how many middlemen are necessary for what should be a simple two-party transaction to take place.
Just based on the little bit I read here, this banking app had to rely on and pay (and hope they’d stay solvent) quite a few other partners and providers just to offer their services to their customers.
“Middlemen” are like the private sector’s version of a bureaucracy. However, it’s not purely private sector, is it? It’s because of all of the laws and regulations that middlemen get to operate. It’s the dark side of the coin that was meant to protect consumers, perhaps with good intentions, but perhaps not.
As I have said before, the real trick isn’t controlling the source of a commodity or service. Where you can really cash in is having control over its distribution.
Great reference, +1
Good choice and they have stricter fed rules to make sure things don’t happen.
Don’t worry.
Crypto is now backed by the full faith and credit of the WEF.
Managed through DeLoitte.
Seriously.
Your stocks and bank accounts can go to zero. Possibly so can COH - cash on hand.
Eggs. Basket. You know the rest. It's why we prep.
WHERE IS SAM BANKMAN-FREID???
Crypto has blockchain so you can never lose your money.
Well, hardly ever...
Lol.
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