Abrupt shutdown of financial middleman Synapse has frozen thousands of Americans' deposits
The bank accounts of tens of thousands of U.S. businesses and consumers have been frozen in the aftermath of the abrupt shutdown and bankruptcy of financial technology company Synapse, which acts as a middleman between financial technology companies and banks. Synapse filed for Chapter 11 bankruptcy protection in April and has shut down its services to some of its fintech or bank partners, including Evolve Bank & Trust. That has caused disruptions for customers of Synapse’s partners, leading to accounts being frozen or showing funds not existing at all.