Judge Says Up To 20 Million Fintech Depositors Are At Risk From Synapse Bankruptcy

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The implosion of banking-as-a-service pioneer Synapse Financial Technologies is shining a harsh and unflattering light on a key link that has enabled the growth of the digital banking industry in recent years. At an emergency hearing Tuesday, U.S. Bankruptcy Court Judge Martin R. Barash, of the Central District of California, framed the situation starkly.

“What we’re really looking at with the meltdown of this company (Synapse), and it is melting down – there was a purchase that didn’t go through, it’s almost out of cash – is a situation where tens of millions of people do not have access to potentially hundreds of millions of dollars of their deposits,” he said. Barash suggested it was time for the federal bank regulators to get involved.

In late April, San Francisco-based Synapse filed for Chapter 11 debtor-in-possession bankruptcy. At the same time, payment processor TabaPay announced it had agreed to acquire the failing firm’s operating assets and keep on many of its 100 or so employees….Story continues…

By: Emily Mason

Source: Judge Says Up To 20 Million Fintech “Depositors” Are At Risk From Synapse Bankruptcy

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Earlier Today

Essential cancer treatment company files Chapter 11 bankruptcy The Olympian, Washington 03:53 

Frinj Coffee Declares Bankruptcy to Restructure The Santa Barbara Independent 02:57 

Senators Markey, Sanders call for federal aid to support patients hit by Steward bankruptcy crisis Boston Herald 02:44 

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’ TechCrunch 02:41 

Yesterday

Medical Properties Tackles NYSE Non-Compliance and Tenant Bankruptcy TipRanks 00:37 

MLB casts doubt on Bally Sports’ bankruptcy plan after broadcast deal falls through Ravalli Republic 00:15 

Van’s Aircraft cleared to exit bankruptcy Aircraft Owners and Pilots Association 23:47 Thu, 16 May 

Bankruptcy auction set for Icon Aircraft Aircraft Owners and Pilots Association 23:47 Thu, 16 May 

Popular retailer gets crucial warning as bankruptcy rumors swirl The Olympian, Washington 21:27 Thu, 16 May 

FTX Clients Unsettled Despite 118% Payouts in Bankruptcy Proceedings—Exploring the Impact on Crypto Market and FTX Token (FTT) Coinotag 20:35 Thu, 16 May 

MLB calls out Bally Sports in bankruptcy court with hilarious Angels reference Halo Hangout (Weblog) 18:32 Thu, 16 May 

Labor Agency to Let Bankruptcy Trustees Handle Abandoned 401(k)s Bloomberg Law 17:48 Thu, 16 May 

Could ‘Endless Shrimp’ Deal Cause Red Lobster’s Bankruptcy? Inside Edition 16:18 Thu, 16 May 

Bill Gates-Backed Battery Tech Company Files For Bankruptcy Amid 9% Decline In Energy Sector Investments In 2023 Benzinga 15:42 Thu, 16 May 

What to know about getting a mortgage after bankruptcy CBS News 14:10 Thu, 16 May 

Esprit Europe, German offshoots of Esprit Holdings file for bankruptcy Fibre2fashion 13:14 Thu, 16 May 

777 Partners in court, possible bankruptcy alleged amid new Everton takeover deadline – reports Goodison News 11:11 Thu, 16 May 

Namibia: Swapo Company Denies Bankruptcy Claims AllAfrica 08:05 Thu, 16 May 

Judge clears way for new Petersen Health financing as bankruptcy advances McKnight’s Long-Term Care News 07:55 Thu, 16 May 

Latest On Diamond Sports Group Bankruptcy MLB Trade Rumors 07:30 Thu, 16 May 

Foxtrot Files For Bankruptcy Even As Its Brand Founder Reportedly Mulls A Restart Bisnow 06:08 Thu, 16 May 

Esprit files for bankruptcy of European businesses Malay Mail 05:39 Thu, 16 May 

FTX Customers Express Frustration Despite 118% Payouts In Bankruptcy Case—Here’s Why Bitcoinist.com 05:35 Thu, 16 May 

How a ‘Crypto King’ allegedly went from video gamer to luxury jet-setter — to bankruptcy Toronto Star 05:14 Thu, 16 May 

Dom’s, Foxtrot parent files for bankruptcy in wake of abrupt closure Miami Herald 04:20 Thu, 16 May 

‘Endless Shrimp’ just one misstep for Red Lobster as it eyes bankruptcy protection CTV News Edmonton 03:24 Thu, 16 May 

Wednesday

Dom’s Kitchen & Market, Foxtrot file Chapter 7 bankruptcy Chicago Sun-Times 02:02 Thu, 16 May 

Dom’s Kitchen, Foxtrot parent company Outfox Hospitality files for bankruptcy after sudden store closures FOX 32 Chicago 01:45 Thu, 16 May 

Mega! Co-Op announces end of Holiday Stationstores franchise, exiting bankruptcy WEAU TV-13, Wisconsin 01:21 Thu, 16 May 

Dom’s Kitchen, Foxtrot parent company Outfox Hospitality files for bankruptcy FOX 32 Chicago 01:04 Thu, 16 May 

Mass. health leaders concerned about effects of Steward bankruptcy WBUR-FM 00:51 Thu, 16 May 

Rudy Giuliani Basically Dubbed a Deadbeat by Bankruptcy Judge Vanity Fair 00:30 Thu, 16 May 

Voyager Creditors Hit by Bankruptcy Legal Servicer Data Breach Bloomberg Law 23:08 Wed, 15 May 

Foxtrot, Dom’s file for Chapter 7 bankruptcy Supermarket News 23:02 Wed, 15 May 

What We Can Learn From Red Lobster’s Closures And Looming Bankruptcy Forbes 22:03 Wed, 15 May 

WeWork to keep its Center City locations open as it exits bankruptcy PhillyVoice 20:55 Wed, 15 May 

Baseball officials cast doubt on Bally Sports bankruptcy plan Star Tribune, Minnesota 20:10 Wed, 15 May 

Red Lobster closes nearly 50 locations within weeks of bankruptcy speculation MassLive.com 19:57 Wed, 15 May 

Giuliani starts hawking coffee beans with his face on the bag on same day ‘disturbed’ bankruptcy judge refused to let him appeal massive defamation judgmentLaw & Crime 19:23 Wed, 15 May 

Another airline strands passengers as it files bankruptcy Yahoo! US 19:12 Wed, 15 May 

‘Rudy.crazy’: Giuliani shills coffee amid bankruptcy woes — and is immediately mocked The Raw Story 19:06 Wed, 15 May 

Administrator blames Barnsley and Nancy co-owners for the impending bankruptcy of KV Oostende Get Belgian & Dutch Football News 18:49 Wed, 15 May 

Foxtrot Market and Dom’s Kitchen file for Chapter 7 bankruptcy CBS Chicago 18:48 Wed, 15 May 

Red Lobster Seeks Bankruptcy Protection TipRanks 17:57 Wed, 15 May 

Red Lobster closes multiple locations, prepares to file for bankruptcy ABC News 17:22 Wed, 15 May 

Small creditors put at risk by latest FTX bankruptcy development Cointelegraph 17:13 Wed, 15 May 

Katie Price dodges bankruptcy hearing again over £3.2 million debt repayment after being served with second eviction notice giving her two weeks to vacate her Mucky MansionMailOnline 15:36 Wed, 15 May 

Red Lobster could file for bankruptcy this month following the closure of 50+ stores: WSJ Business Insider 14:21 Wed, 15 May 

Fashion brand Esprit files for bankruptcy for its European business Channel NewsAsia 13:40 Wed, 15 May 

Financial Crisis at Red Lobster: Downtown Silver Spring Location Among Dozens Closed as Bankruptcy Looms Source of the Spring 13:37 Wed, 15 May 

Katie Price dodges another bankruptcy hearing amid £750,000 tax bill and Mucky Mansion eviction The Mirror 12:11 Wed, 15 May 

Federal judge expresses frustration at status of Giuliani’s bankruptcy case Just The News 06:42 Wed, 15 May 

Judge Says Up To 20 Million Fintech “Depositors” Are At Risk From Synapse Bankruptcy Forbes 06:27 Wed, 15 May 

National retail chain closes several more stores in bankruptcy News & Observer, North Carolina 06:00 Wed, 15 May 

Red Lobster preparing for bankruptcy after closing dozens of restaurants BNO News 05:07 Wed, 15 May 

Red Lobster expected to file for bankruptcy after restaurant closures The Independent 04:28 Wed, 15 May 

Red Lobster ‘to file for bankruptcy next week’ after seafood chain announced dozens of restaurants to close MailOnline 03:05 Wed, 15 May 

Giuliani bankruptcy judge frustrated with case, rebuffs attempt to challenge $148 million judgment The Citizen 02:50 Wed, 15 May 

Tuesday

Biotech Co. Hits Bankruptcy With Creditor Deal In Hand Law360 02:09 Wed, 15 May 

Giuliani bankruptcy judge frustrated with case, rebuffs attempt to challenge $148 million judgement MailOnline 01:27 Wed, 15 May 

‘I am disturbed’: Judge overseeing Giuliani bankruptcy castigates former mayor’s ‘troubling attitude vis-à-vis the law,’ rejects bid to appeal $148 million defamation judgmentLaw & Crime 01:05 Wed, 15 May 

Original Sickles Market In Little Silver Files For Bankruptcy, Too Patch 23:32 Tue, 14 May 

Running company 4RUN3 declares bankruptcy Western Mass News 20:41 Tue, 14 May 

From Near Bankruptcy to Booming Wealth: How an Investment in XRP Saved a Businessman, and Why BlockDAG’s 30,000x Potential Could Be Next Metaverse Post 20:40 Tue, 14 May 

Red Lobster closing dozens of restaurants as bankruptcy looms Las Vegas Review-Journal 20:27 Tue, 14 May 

Karnataka on brink of bankruptcy: R Ashoka Deccan Herald 19:52 Tue, 14 May 

Red Lobster is closing dozens of restaurants as it faces possible bankruptcy Quartz 19:52 Tue, 14 May 

3 Red Lobster restaurants close in Kansas as bankruptcy talks loom KWCH 19:24 Tue, 14 May 

Restaurant chain closes dozens of locations as bankruptcy looms News & Observer, North Carolina 17:47 Tue, 14 May 

Delaware’s Red Lobster Locations to Remain Open Despite Bankruptcy Filing Shore News Network 17:34 Tue, 14 May 

Red Lobster Files for Bankruptcy, Closes Several Maryland Locations Shore News Network 17:34 Tue, 14 May 

Longtime Tampa sandwich shop Brocato’s files for Chapter 11 bankruptcy Creative Loafing Tampa Bay 17:31 Tue, 14 May 

Air Vanuatu files for bankruptcy protection and liquidation World Airline News 17:22 Tue, 14 May 

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