A big problem has happened between a new tech company and the banks it works with. This problem is affecting a lot of people in the USA. They can’t get to their money for almost two weeks now. This info is from papers filed in court recently.
The tech company is called Synapse. It helps other tech companies give banking services to their customers. But Synapse has been arguing with some banks about how much money it owes them.
Things got worse in April when Synapse went bankrupt. Then on May 11, Synapse stopped a system that lets banks like Evolve Bank & Trust do transactions. This means people using some tech apps can’t get to their money.
One person affected is Chris Buckler, a teacher from Maryland. He can’t use his money in a crypto app called Juno. He’s worried because he has almost $38,000 stuck in his account. This money took him a long time to save.
Millions of people are affected by this problem. Synapse works with lots of banks and tech companies. They have about 10 million users altogether.
The boss of Synapse, Sankaet Pathak, hasn’t said anything yet. Evolve Bank won’t comment either. They just say Synapse’s actions put people’s money at risk.
People like Joseph Dominguez from Sacramento are worried too. He has more than $20,000 stuck in his account. He doesn’t know if he’ll lose his money if Synapse can’t prove who owns it.
This problem shows a weakness in the system where tech companies work with banks. This partnership helps tech startups offer banking services. But when things go wrong, customers suffer.
Experts say regulators should step in to help. But they haven’t yet. They usually only help when banks fail, which hasn’t happened here.
Chris Buckler wants people to know that even though banks keep your money safe, tech problems can still make it hard to get to. He’s worried this could happen again
