The feds need to come crashing down on operations like this. Perhaps you should need to be an accredited investor before you can put your $280K nest egg into a poorly regulated not-bank offering 'prize linked savings' accounts.
Synapse still can't find its money
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Re: Synapse still can't find its money
#12Sounds like Synapse was a great money laundering schemme.
My conclusion is that all aggregators are bad. Economies of scale are bad.AI is bad. Anything that devalues humans is bad.
Everything has just become bad.
Reminds me of our blooming awareness of environmental pollution in the 70s.
Except instead of it being obvious, this 'financial pollution' is insidious, invisible.
Until small pockets of people are crippled. And that is why it persists-because enough people are spared this time and the inertia of the majority prevents action. Next month it will be another corruption exposed. Silicon valley bank, enron, Lehman, Salomon ....It just keeps going.
Re: Synapse still can't find its money
#13The feds need to come crashing down on operations like this. Perhaps you should need to be an accredited investor before you can put your $280K nest egg into a poorly regulated not-bank offering 'prize linked savings' accounts.
The accounts were genuinely FDIC insured. Evolve is a real bank.
But a few months before the bankruptcy, Evolve pushed Synapse to move the money into non-FDIC insured brokerage accounts. As far as I can tell, this was:
- a way to move a hole in the balance sheet from an FDIC insured to an uninsured place
- completely illegal, insofar as the only user consent was a manual opt-out, and some users weren't even sent emails about the change.
Re: Synapse still can't find its money
#14I'm sure FDIC will come around at some point and bail out the average folks who got wiped here. Just like they bailed out the totally average definitely not rich people/corporations who got wiped by SVB collapsing. Right guys? Right?
The problem here is knowing customer balances. A lot of the money is still out there, but it is not properly associated with any individuals so it's infeasible (at present) to get them back their money. Which is different than what FDIC is there for, which is to insure against a bank being unable to cover deposits, but balances have been properly tracked. If Synapse (and apparently their partner Evolve) had been mode…
He openly laughs. Scumbag.
Re: Synapse still can't find its money
#15I'm sure FDIC will come around at some point and bail out the average folks who got wiped here. Just like they bailed out the totally average definitely not rich people/corporations who got wiped by SVB collapsing. Right guys? Right?
The problem here is knowing customer balances. A lot of the money is still out there, but it is not properly associated with any individuals so it's infeasible (at present) to get them back their money. Which is different than what FDIC is there for, which is to insure against a bank being unable to cover deposits, but balances have been properly tracked. If Synapse (and apparently their partner Evolve) had been mode…
The other banks involved all agree that the remaining balances are with Evolve, and that there isn't money that's been moved somewhere else. If there was, Evolve might be willing to say where, which they've been unwilling to do so far–it's very "dog ate my homework."
Given that the depositors still have active DDA agreements with Evolve, even if they sent the money elsewhere, they still have a responsibility to provide it.
Re: Synapse still can't find its money
#16> In June, the FDIC made it clear that its insurance fund doesn’t cover the failure of nonbanks like Synapse, and that in the event of such a firm’s failure, recovering funds through the courts wasn’t guaranteed. It seems they should be able to sue Evolve (the bank), given that they money is there, and there's proof that the money's there. IE, the risk of 3x damages should be enough to scare the bank into paying out.
Paying _who_ out?
Yotta is who the people gave their money to. Yotta then used Synapse (which went bankrupt) to actually deposit the money into not-per-user accounts at 4 different banks. As-in, if you had an account with Yotta your money would be co-mingled with thousands+ other individuals into a singular Evolve account.
Evolve has no proof that your money is within the account Synapse held with them. As-in your money could be at one of the 3 other banks.
Yotta is the one being irresponsible for not keeping track of how Synapse split the funds. (Although arguable Evolve shouldn't keep co-mingled funds since that sounds like a KYC violation).
--
This is why not only does your broker not hold your stocks for you, they also tell the holding company who owns them.
Yotta is speed running the financial system's previous failures.
Re: Synapse still can't find its money
#17"We don't know exactly which customer's money went into which bank(s)" gets a bit more spicy when you add the fact all the customers put in $265m and the real-banks only seem to have $180m of it, and AFAIK nobody has a clear explanation for the missing $85m. (~32%) P.S.: I also find it amusing that they stored+hosted their financial ledger using MongoDB. Not that you can't commit massive financial mismanagement with…
> P.S.: I also find it amusing that they stored+hosted their financial ledger using MongoDB. Not that you can't commit massive financial mismanagement with any tool, but I was not a fan of the "NoSQL" evangelism of the 2010s.
Embezzlement is finally web scale! [1]
Re: Synapse still can't find its money
#18sufficiently profitable incompetence is indistinguishable from malice
Re: Synapse still can't find its money
#19Earlier quoted context omitted.
The problem here is knowing customer balances. A lot of the money is still out there, but it is not properly associated with any individuals so it's infeasible (at present) to get them back their money. Which is different than what FDIC is there for, which is to insure against a bank being unable to cover deposits, but balances have been properly tracked. If Synapse (and apparently their partner Evolve) had been mode…
The other banks involved all agree that the remaining balances are with Evolve, and that there isn't money that's been moved somewhere else. If there was, Evolve might be willing to say where, which they've been unwilling to do so far–it's very "dog ate my homework." Given that the depositors still have active DDA agreements with Evolve, even if they sent the money elsewhere, they still have a responsibility to provi…
> Given that the depositors still have active DDA agreements with Evolve, even if they sent the money elsewhere, they still have a responsibility to provide it.
I didn't say otherwise. But Evolve doesn't know what money belongs to what individual customer, Synapse maintained that part of the ledger (poorly). So even though Evolve has the cash (it appears), they can't distribute it to you because they don't know how much is yours, and Synapse was such a cluster that they failed at their primary job.
Re: Synapse still can't find its money
#20"We don't know exactly which customer's money went into which bank(s)" gets a bit more spicy when you add the fact all the customers put in $265m and the real-banks only seem to have $180m of it, and AFAIK nobody has a clear explanation for the missing $85m. (~32%) P.S.: I also find it amusing that they stored+hosted their financial ledger using MongoDB. Not that you can't commit massive financial mismanagement with…
I wonder if use of MongoDB creates a legal liability. I’m not up to date on the architecture of MongoDB but I am under the impression that it couldn’t be reliably used for this kind of thing?
(The problem here is not nosql, I believe you can do reliable accounting with ScyllaDB and Cassandra as long as you design things correctly. Basically only ever allow append/add but never allow update/delete. I’m not sure if this is true of MongoDB.)