Fintech
Fintech Nexus Newsletter (June 10, 2024): Jelena McWilliams Discovers $85 Million Missing in Synapse Fiasco
The Synapse debacle continues.
Former FDIC Chair Jelena McWilliams is the court-appointed trustee handling the bankruptcy process. She was appointed on May 24.
The bankruptcy judge held a hearing Friday during which McWilliams’ first report was discussed. He has been trying to reconcile the missing funds and there appears to be an $85 million shortfall.
This is the first attempt to obtain an independent determination of the extent of the missing funds.
McWilliams said Synapse apparently shuffled funds between different institutions, using multiple banks to service the same companies.
What’s worse is that there is no one left at Synapse to help, as all employees were fired on May 24th. What a mess.
Meanwhile, fintech customers are still locked out of their funds. McWilliams recommended that all FBO account holders receive a partial payment but there was no agreement on the exact path forward.
If you want to stay informed about Synapse you should follow the writings of Jason Mikula (Here is the last one). We are probably still weeks or even months away from a complete solution.
In the foreground
> Synapse bankruptcy trustee says $85 million in customer savings missing in fintech meltdown
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Peter Renton is president and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and is the author and creator of the Individual fintech podcastthe first and longest running fintech interview series.