Synapse Bankruptcy Freezes Thousands of Deposits, Puts Millions at Risk

The abrupt shutdown and bankruptcy of financial middleman Synapse has led to the freezing of tens of thousands of U.S. bank accounts, affecting both businesses and consumers. Synapse's collapse has disrupted services for its fintech and bank partners, including Evolve Bank & Trust, causing significant issues for customers. The situation has raised concerns about the fintech business model and its regulatory oversight.