[rootusrootus]

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.

[ctbeiser]

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.

[hipadev23]

> Evolve pushed Synapse to move the money into non-FDIC insured brokerage accounts

Where can I read more?

[lxgr]

Why would they do that? Are you implying that Evolve (and not Synapse) had a hole in their balance sheet? Is there any evidence of that?

Otherwise, FDIC insurance wouldn’t matter here, no?

[bryan0]

The “accredited investor” thing always seemed like a scam to me. Like if you have a lot of money we will trust that you know how to invest, otherwise we won’t let you.

[jitl]

If you have a million dollars and accrue a debt of $500,000 you are solvent. If you have $20,000 and accrue a debt of $500,000, you are bankrupt and your debtors take a big loss and everyone is sad.

(Also presumably if you have a bunch of money you did get it somehow…)

[bdangubic]

$20k with $500k debt is a whole lot of airbnb enterprenuers racking in serious dough.

debt is a great thing as long as you make money from that debt (you don’t pay taxes on the debt either) :)