'I have no money': Thousands of Americans see their savings vanish in Synapse fintech crisis
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.
https://www.cnbc.com/2024/11/22/synapse-bankruptcy-thousands-of-americans-see-their-savings-vanish.htmlOpen linkView original on lemmy.world227
Comments45
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
He's an old man. Unless anti-aging research unexpectedly advances several orders of magnitude faster than its been doing in the next few years, he'll be leaving office one way or another.
His father made it to 93. So, he has 15 more years.
That’s not how that works.
That is how that works. Genetics strongly influence factors like disease resistance, metabolism, and cellular repair, which contribute to a longer lifespan.And trump has easy access to cutting edge medicine.
A sedentary lifestyle, obesity and a diet heavy in hamberders and other crap food can more than offset that.
Feet first and hopefully in fewer than 4 years
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?
Interest rates. Then again, you can go for other more reputable brands that have good interest rates. I was making around 5% with Vanguard cash plus for some time. It's based on money market though, so as federal interest rates went down, so did the rates for that account. There are smaller companies with slightly better rates, but IMO Vanguard is way more trustworthy than all these new Fintech startups and I know the FDIC insurance is legit.
Yes I agree. I was thinking of switching from my current bank to one that had a 5% interest for my emergency fund but it's a new bank to me. I didn't recognize the name. Decided not to do it because I don't know who they are. I'm referring to Openbank.
I would trust Vanguard
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.
Isn't $10k like one months mortgage on a house in the bay area? And just swing by vegas... plenty of people spending that kind of money. It may seem like a different kind of life, but often it is just a different location. They often live a lot like the rest of us... thier emergency fund might last 2 months instead of one, but they are still pretty close to broke if they lose thier job. When someone starts dropping $100k... that is a different life.
Damn I guess I’m broke then. Thought I was doing alright.
Yeah, the number of people who area few missed paychecks or less away from being broke according to articles I have read is alarmingly high. Even tons of people earning 6 figures. Housing and food are such a high percentage of peoples expenses these days.
6 figures is getting by these days
Yeah, like in new york city you can't afford a house on a low six figure income. But in mississippi you can buy a masion. The discrepancy is insane. I guess I am lucky because I don't like big cities and can work remote.
Here is someone living that different life than the rest of us... https://news.slashdot.org/story/24/11/29/1323218/crypto-entrepreneur-eats-6-million-banana-on-stage?utm_source=rss1.0mainlinkanon&utm_medium=feed 6 mil... just instructions. Didn't even come with the banana apparently. And it wasn't for charity either.
I remember this. Stupid haha. Makes me think about the pharma bro who bought the Wu Tang record
Yeah, both were really spending other people's money that they got through fraud and such.
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.