Funds Frozen in Synapse to Be Returned by Year End, Trustee Says

The remainder of the roughly $200 million of consumer funds frozen during the bankruptcy of banking-as-a-service provider Synapse Financial Technologies Inc. should be returned to customers in December, according to court-appointed trustee Jelena McWilliams.

The final disbursement of funds will mark the end of a more than six-month ordeal that has prevented consumers from accessing money held at fintech firms including Yotta Savings, Copper Banking and Juno Finance. Synapse’s primary banking partner, Evolve Bank & Trust, reports that it has completed efforts to reconcile its ledgers with those of bankrupt Synapse, according to a trustee status report. The bank ...