[roywiggins]

a bunch of people quite recently had their money zapped away when their fintech wildcat bank accounts disappeared so clearly there is still some room to dodge rules

> Bradley Lott-Tillery, 24, from Arizona also entrusted Yotta with his savings, thinking his money would be protected by the federal government. “I emailed [Yotta], made sure it was FDIC insured. Of course, they emailed me back and told me, yes, it’s FDIC insured, which we now know is not true,” Lott-Tillery said.

> While the banks with which fintech companies like Yotta and Juno partner are FDIC insured, this only kicks in when a bank is found to have failed. Since the intermediary Synapse filed for bankruptcy, but not any of the banks, the money is not covered by the regulatory agency.

https://businessjournalism.org/2025/03/synapse-collapse/

(their money was "insured" in the same way depositing money in a random guy's bank account is insured: it's not insured against the guy! these bank-shaped companies managed to convince a bunch of people that they were close enough to banks and about as safe, and then it turned out they all handed the money over to the same fintech company to interface with the actual banks, and that company went messily bust)