Americans Left Penniless as Synapse Fintech Collapses

Thousands of Americans have lost access to their savings due to the collapse of fintech firm Synapse, which partnered with banks like Evolve to offer financial services through startups such as Yotta. Customers, including former teacher Kayla Morris, have been locked out of their accounts for months, with some receiving only a fraction of their deposits back. The crisis highlights the risks of fintech systems where customers lack direct relationships with banks, and regulatory gaps have left many without recourse. Efforts to recover the missing $96 million in customer funds have been hampered by a lack of cooperation among involved banks.