Synapse Data Spat Deepens Crisis Over Fintech App Users’ Cash
- Company said data is at risk in dispute with database provider
- Fintech users tell judge they still lack access to their funds
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A new dispute between fintech middleman Synapse Financial Technologies Inc. and its database provider is threatening efforts by independent advisers to return money to millions of customers who have been cut off from their money for weeks.
Former Federal Deposit Insurance Corp. Chair Jelena McWilliams, who was brought in to unwind Synapse after the company filed Chapter 11, said Wednesday during a bankruptcy hearing that database provider MongoDB Inc. has indicated it could soon delete a cache of Synapse data. The information is needed to accurately distribute more than $100 million to impacted customers and determine the origin of an estimated $65 million to $96 million shortfall, McWilliams has said.