Synapse, a fintech middleman, filed for Chapter 11 bankruptcy, disrupting services to partners like Evolve Bank & Trust, causing frozen accounts for thousands of Americans.

Financial technology company Synapse, a middleman between fintech firms and banks, filed for Chapter 11 bankruptcy and halted services to some partners like Evolve Bank & Trust. This led to disruptions for customers, causing frozen accounts and funds not being visible for thousands of Americans. Synapse's bankruptcy has "needlessly jeopardized end users" and made it difficult for banks to comply with banking laws, ensuring customer deposits are accounted for.

May 22, 2024
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