4w ago

'I have no money': Thousands of Americans see their savings vanish in Synapse fintech crisis

www.cnbc.com 'I have no money': Thousands of Americans see their savings vanish in Synapse fintech crisis

CNBC spoke to a dozen customers caught in the Synapse fintech predicament, people who are owed sums ranging from $7,000 to well over $200,000.

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.

United States | News & Politics @lemmy.ml

'I have no money': Thousands of Americans see their savings vanish in Synapse fintech crisis

www.cnbc.com /2024/11/22/synapse-bankruptcy-thousands-of-americans-see-their-savings-vanish.html

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Technology @lemmy.world

'I have no money': Thousands of Americans see their savings vanish in Synapse fintech crisis

www.cnbc.com /2024/11/22/synapse-bankruptcy-thousands-of-americans-see-their-savings-vanish.html

293 80

Business @lemmy.world

'I have no money': Thousands of Americans see their savings vanish in Synapse fintech crisis

www.cnbc.com /2024/11/22/synapse-bankruptcy-thousands-of-americans-see-their-savings-vanish.html

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35 comments

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!

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.
- The Reagan Revolution is more responsible for Trump than Trump and the crony oligarch masturbatory clown show we call an economy.
  Imho, the last chance to save this faltering country would have been to reject the trickle down economic con, Reagan electorily, and Welch culturally.
  There was just no coming back from doing that and convincing their former opposition to take the bribe money with them, today's neoliberals.
  The last 40 years have just been leftover momentum, playing pretend this country wasn't over as anything but an oligarch exploitation trap.
  The United States as a society irrevocably died around the time the first millennial was born. Twas unrepentant greed workshop that killed the beast.
  
  I mean Trump's economic policies are a philosophical rejection of trickle down economics. He campaigned on a platform of leveraging trade protectionism and immigration reform to produce higher blue collar salaries. He's doing so in a way that is giving both Wall Street and economic experts conniptions, because they'll end up biggest losers. Trump has even explicitly called out NAFTA and one of the reasons he won 2016 was his rejection of the TPP.
  That is honestly the kind of policy I'd be opening to supporting in a vacuum. A lot of it is oddly similar to Bernie's economic plans circa 2014. The problem is Trump is an openly corrupt billionaire, friends with other slightly less openly corrupt billionaires, may/may not be a Russian asset, and probably is in the early stages of dementia. There's absolutely no way he delivers.

This sucks big time. Real question, what motivated people to put huge sums of money into a startup company? Some deal on a loan?
- I believe they were told that it was FDIC insured.
  
  Regardless though. What’s the the incentive of some new app over a bank or some already known app?
- 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.

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.
- Precisely this, hence my down voted "womp womp" comment.

Curious why law enforcement wouldn't be involved in this. Sure smells like a Madoff like thing in the background.
- Seems like the sort of thing the SEC might investigate.
  Who knows what investigations are going on. They don't always put out a press release at the start of every investigation.
  
  Maybe. But you'd think the reporter might ask some of the relevant agencies. Or the victims they interviewed might mention it.

If you’re in the UK check FSCS to see if your money is protected.
https://www.fscs.org.uk/

Womp womp.

35 comments