In April of 2024, Synapse Financial Technologies, Inc.— a processing middleman between FinTechs and banks — filed for bankruptcy. With the absence of an intermediary, customers soon discovered that $85 million was missing.
If you have been following the FinTech community or Emery | Reddy in the past several weeks, you will likely have heard that consumer protection attorneys representing FinTech customers and investors across the nation have brought complaints against these banks for their negligence. The banks involved in these violations include AMG National Trust, Evolve Bank & Trust, Lineage Bank, and American Bank Inc.
Over the past seven months, customers have received communications from these banks blaming incomplete ledgers and other banks for their inability to produce funds. Where a customer once had thousands of dollars, banks are refunding cents.
Those whose funds are frozen have formed online communities to support and help one another to get their funds back and bring the banks to justice. Thanks to the proactivity of the community, attorneys have been able to file these class actions.
While the banks’ lapse in risk management may have disappeared these funds for good, Timothy Emery and the other attorneys bringing this case are determined to make things right for customers. Learn more about this story here.
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