"Synapse Bankruptcy Freezes $160M, Shaking Fintech Industry"
TL;DR
The collapse of fintech company Synapse has left nearly $160 million in customer funds frozen, impacting numerous fintechs and millions of consumers. After filing for Chapter 11 bankruptcy and failing to sell its assets, Synapse is now urged to liquidate under Chapter 7. The situation has raised concerns about the stability of the banking-as-a-service model and digital banking.
- Synapse’s collapse has frozen nearly $160M from fintech users — here’s how it happened TechCrunch
- $95 Million The New York Times
- Why the Synapse Bankruptcy Has the Fintech World on Edge The Wall Street Journal
- Banks in Synapse mess make progress toward releasing deposits of stranded fintech customers CNBC
- FDIC Warnings on Nonbanks Point to Gaps in Deposit Insurance PYMNTS.com
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