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When Adam Moelis co-founded Yotta, a fintech startup in 2019, his goal was to revolutionize how Americans save money to navigate life’s uncertainties.
However, Yotta inadvertently became a source of distress for numerous customers who relied on their accounts for financial stability.
The crisis unfolded on May 11, triggered by a disagreement between Yotta’s banking partners, Synapse and Evolve Bank & Trust. This led to the freezing of accounts not only at Yotta but also at many other startups. Synapse’s bankruptcy earlier this year further complicated the situation, causing significant financial turmoil for customers.
Over the past few weeks, 85,000 Yotta customers have been unable to access their accounts, totaling $112 million in savings, as shared by Moelis with CNBC. This disruption has caused immense hardship, forcing users to seek alternative means for basic necessities and disrupting their financial plans.
2024-06-01 07:00:01
Originally published on www.cnbc.com