The collapse of middleman Synapse has exposed the illusion of safety in the fintech industry. Over 100,000 Americans with $265 million in deposits found themselves locked out of their accounts starting from May 11. Among those affected, approximately 85,000 were Yotta customers alone¹. These individuals believed their money was protected by the Federal Deposit Insurance Corp. (FDIC), but the reality turned out to be quite different. The incident has raised serious questions about the safety and reliability of fintech platforms that partner with banks rather than owning them¹. It's a stark reminder that even in the digital age, financial security remains a critical concern for consumers.
Olatunji Ayodele Abidemi
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The collapse of middleman Synapse has exposed the illusion of safety in the fintech industry
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