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'I have no money': Thousands of Americans see their savings vanish in Synapse fintech crisis (www.cnbc.com)

submitted 18 hours ago by shoulderoforion@fedia.io to c/technology@lemmy.world

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CNBC spoke to a dozen customers caught in the Synapse fintech predicament, people who are owed sums ranging from $7,000 to well over $200,000.

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[–] 2001aCentenaryofFederation@fedia.io 52 points 17 hours ago (8 children)

I'm not from the US so unfamiliar with any of this, but having followed the link to the Yotta website from the article, it is a... gambling site? What leap is missing that people would entrust their savings to gambling?

[–] Iheardyoubutsowhat@lemmy.world 40 points 16 hours ago* (last edited 16 hours ago) (1 children)

There was no interest on Yotta accounts. Originally, when you signed up, you were given a lottery ticket everyday for every 25$ in the account. There was a lottery everyday where you could win up to 25000. Then they switched to games where you essentially gambled with the tickets that were given based on your amount.

I was once a member but pulled the money when interest rates started to rise. I was lucky.

I'll also note, when signing up, I was given the impression this FDIC insured.

[–] jagged_circle@feddit.nl 2 points 3 hours ago (1 children)

Why did you think they were FDIC insured?

[–] Iheardyoubutsowhat@lemmy.world 4 points 2 hours ago (1 children)

Because they said they were, or implied it. I would not have opened a savings account had they not been.

In theory, these people's money isn't gone, it's just misplaced into other banks if I understand correctly...and none of these entities want to pay for a full audit because of cost and probably, liability.

The banks that actually hold the money are FDIC insured, but Yotta is not it seems. The way it's worded it makes it look like Yotta is.

[–] jagged_circle@feddit.nl 2 points 2 hours ago* (last edited 2 hours ago)

Yeah my understanding is they'll get their money back then

Update: oh, well not if the fintech org didn't actually out your money in those banks lol

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