For 15 years, former Texas schoolteacher Kayla Morris put every dollar she could save into a home for her growing family.
When she and her husband sold the house last year, they stowed away the proceeds, $282,153.87, in what they thought of as a safe place — an account at the savings startup Yotta held at a real bank.
Morris, like thousands of other customers, was snared in the collapse of a behind-the-scenes fintech firm called Synapse and has been locked out of her account for six months as of November. She held out hope that her money was still secure. Then she learned how much Evolve Bank & Trust, the lender where her funds were supposed to be held, was prepared to return to her.
“We were informed last Monday that Evolve was only going to pay us $500 out of that $280,000,” Morris said during a court hearing last week, her voice wavering. “It’s just devastating.”
SilentByAssociation 0 points 6 months ago
Evolve Bank and Trust is absolutely a bank. I believe they are responsible for disbursing funds in this matter, and they had to accurately (or as accurately as possible) recreate their Synapse ledger consisting of 1,000,000+ transactions. That's only their portion of transactions, and their are a few other banks that Synapse had a business relationship with.
Synapse, on the other hand, was a brokerage. Here's how Evolve breaks it down:
https://www.getevolved.com/synapse-bankruptcy-update/