Witness Jelena McWilliams, the head of the Federal Deposit Insurance Corporation (FDIC), testified before the Senate Banking, Housing, and Urban Affairs Committee in Washington, D.C., U.S., on August 3, 2021.
According to the court-appointed trustee overseeing the Synapse bankruptcy, there is an $85 million discrepancy between the funds held by partner banks of the fintech intermediary Synapse and the amount owed to depositors.
Customers of fintech companies utilizing Synapse to connect with banks had a total of $265 million in their accounts. However, the banks only had $180 million linked to these accounts, as reported by trustee Jelena McWilliams.
This missing amount sheds light on the core issue behind the most significant crisis in the U.S. fintech industry since its rise following the 2008 financial crisis. Over 100,000 customers of various fintech firms have been unable to access their savings for nearly a month following the collapse of Synapse.
2024-06-07 16:34:08
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