Fintech
Synapse Failure: Savings App Yotta Customers Have Millions Trapped
The sudden collapse of a little-known fintech company has trapped more than $100 million in retail customer money in apps like Yotta, locking up savings for down payments, hospital bills and college tuition.
It all started after Synapse Financial archived for Chapter 11 in April, triggering a cascade of problems for fintech firms that used the bankrupt company as a middleman to transfer funds to banks. More than 100,000 customers who use Yotta and dozens of other savings and investing apps have been locked out of their accounts for months.