"85,000 Bank Accounts Frozen Amid Synapse Bankruptcy, Yotta CEO Confirms"
Yotta, a fintech savings app, has seen 85,000 customer accounts locked due to a dispute between its banking partners, Synapse and Evolve Bank & Trust. The issue, which has left $112 million in savings inaccessible, stems from disagreements over transaction ledgers and has affected multiple fintech firms. The crisis highlights the risks in the "banking as a service" model and has prompted calls for increased regulatory scrutiny. Former FDIC Chair Jelena McWilliams has been appointed trustee to resolve the Synapse bankruptcy and return funds to users.