CNBC spoke to a dozen customers caught in the Synapse fintech predicament, people who are owed sums ranging from $7,000 to well over $200,000.
The government should mandate warning labels on companies like that, maybe “fintech” would be a good word to force them to use, similar to the way large companies have to use the “enterprise” warning label and games companies have to be labelled “triple A” to know their products and services are low quality and have a high risk of failure.
Dont they have to write in the footer WE ARE NOT A BANK
Usually that’s what I look for
I am from the US and I have no idea what they are talking about here.
I’m not from the US so unfamiliar with any of this, but having followed the link to the Yotta website from the article, it is a… gambling site? What leap is missing that people would entrust their savings to gambling?
when a bank is described as a “savings startup”, you should run the other way screaming
Exactly. The combination of “bank” and “startup” is innately terrifying. Don’t put more money than you can afford to lose in a place like that.
(Aren’t there any laws in the US regarding who can call themselves a bank? Or is this another case of Americans being unwilling to do something sane and obvious because some politician has convinced them it will infringe on their “freedom”?)
Yotta Savings, the fintech that all these people deposited their money with, first came to my attention through this YouTube video from CoffeeZilla a couple months back, seems Yotta was a huge sponsor of really an astounding amount of YouTube creators, who while hawking Yotta to their subscribers also deposited their own money with Yotta as well. Huge mess.
Risky investment turns out to be risky. No one could have seen that coming.
If you see this as investment, the consider that investors were lied to (the startups claimed to have FDIC coverage) and didn’t have accurate information to assess the risk.
Yeah, it’s almost weird that it’s news.
Imagine if they made news after a big fight about people who gambled and lost.
Imo the bigger news is the financial illiteracy of the average person.
Damn funny how this bravado is never around for the svb failed… The rich got bailed and normies said it was good.
Normies get ducked here and other normies come out in droves to dunk on them.
Microcosm of USian culture haha
This isn’t about shareholders being wiped out. It’s about account holders of what they thought were bank accounts losing everything because their accounts were powered on the back end by a company they’d never heard of or directly dealt with.
People relied on accounts powered by Synapse for everyday expenses like buying groceries and paying rent, or for saving for major life events like home purchases or surgeries.
Gotta love US healthcare
