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A comment on Yotta Bank and the Problem with Fintech (Patrick Boyle) [video]. Parent comment

Re:Yotta Bank and the Problem with Fintech (Patrick Boyle) [... by cloudsec9 on Monday December 02, 2024 @12:54AM (#42293507)
More to the point, FDIC insurance covers a BANK failure; but in this instance it wasn't the bank that failed. It doesn't even seem it was Yotta that had the issue, but rather their transaction company, Synapse.

Now if Synapse had created individual accounts for the Yotta depositors, we wouldn't be talking now. But what happened was Synapse had a few account(s) for Yotta and a bit of a records gap, which it seems is making it hard to tie Yotta depositors to their money. What's unclear is if this is a Synapse issue, a Yotta issue or something else.

But the fact that there is this accounting issue shows that there is a gap in how FinTechs are actually managing cash flows, to the risk and detriment of their customers/depositors.

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Re:Yotta Bank and the Problem with Fintech (Patrick Boyle) [... by wat10000 on Monday December 02, 2024 @08:23AM (#42295945)
It’s not just a matter of tying depositors to their money. There’s something like $100 million that’s actually missing. It’s not clear whether it’s just a matter of finding the accounts or whether it’s actually been stolen somehow. Synapse managed the money. They say it’s with Evolve Bank & Trust, but Evolve says they don’t have it. It seems likely that it was moved and they just lost track, but that doesn’t seem to be entirely known yet.
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