Update 11/5/24: Email went out (“Return of Synapse Brokerage’s End User Funds”) about how to claim your funds. Some people are getting their money back, others it’s still mostly gone. Not clear exactly what determines this all.
Update 5/26/24: Looks like the problems are significantly worse. Juno sent this out:
On May 7, 2024, we were notified that Lineage Bank, Member FDIC, halted ACH processing for all Synapse Brokerage accounts, and that Evolve Bank & Trust, Member FDIC, would now process ACH transactions on behalf of Synapse Brokerage. Juno’s end users hold accounts with Synapse Brokerage.
On May 11, 2024 we were notified by Evolve Bank & Trust that they would be immediately halting card payments. They also stopped processing any incoming ACHs and Wires. Please note that both end user account and routing numbers as well as the debit card is issued by Evolve Bank & Trust. These events have left Synapse Brokerage without an ACH processor, and Evolve Bank & Trust’s decision to freeze cards and incoming ACHs and Wires is causing transactions to fail.
On May 13, 2024, we learned in court proceedings that Evolve Bank & Trust had taken this action because they were unable to access a key dashboard provided by Synapse which according to Evolve Bank & Trust was necessary to perform their duties as a regulated financial institution. Again, we have no control over these actions by Synapse or Evolve Bank & Trust and we learned about this only after Evolve Bank & Trust had already frozen accounts and restricted access to end user funds.
Original post: A lot of FinTechs rely on a third party financial institution to power their products. For example both Yotta Savings & Juno rely on Synapse. Unfortunately Synapse went bankrupt in October and last week TabaPay pulled out of purchasing Synapse. It’s not clear if this has caused further issues but Yotta has sent out this e-mail:
It’s also not possible to do any ACH transactions on Juno. Money held should be safe as it’s insured at partner banks.
