Debt & Savings
Moelis-Backed App Has $113 Million Trapped in Fintech Collapse
People with funds on Yotta and other platforms haven’t been able to access their accounts following the bankruptcy of Synapse Financial.
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The sudden failure of a little-known company in the fintech industry has ensnared more than $100 million in retail customer money on apps including Yotta, locking up nest eggs for down payments, funds for hospitals bills and cash for college tuition.
It all started after Synapse Financial filed for Chapter 11 in April, setting off a cascade of problems for fintech firms that used the bankrupt company as a middleman to transfer funds to banks. More than 100,000 customers using Yotta and dozens of other apps for saving and investing have been locked out of their accounts for months.