Skip to main content

The Spectacular Synapse Collapse

3 months 2 weeks ago
The spectacular collapse of fintech middleman Synapse has left $200 million in customer money frozen and up to $95 million missing, with no clear answers about where the funds went. After Synapse, a financial technology company connecting other fintechs to banks, filed for bankruptcy in April 2024, customers of apps like Yotta, Juno, and Copper found themselves locked out of their savings. Founded in 2014 by Sankaet Pathak, Synapse connected consumer-facing fintech platforms with banks holding customer deposits. The disaster unfolded after relationships with regional bank Evolve and unicorn client Mercury deteriorated, triggering a chain reaction through the financial infrastructure. Nearly a year later, Fortune reports that a Department of Justice criminal investigation is underway, while the bankruptcy's court-appointed trustee called the situation an "awful, awful" mess. The debacle, the outlet writes, exposes the risks lurking beneath popular financial apps operating in a regulatory frontier where customer funds travel across an invisible bridge of intermediaries.

Read more of this story at Slashdot.

msmash

Why Most Countries Are Struggling To Shut Down 2G

3 months 2 weeks ago
Global telecom operators are struggling to shut down aging 2G networks despite pressure to free up spectrum for 4G and 5G services, as the transition threatens to exclude millions of vulnerable users. While Vietnam successfully decommissioned 2G in November 2024 by providing free 4G phones to low-income users, countries like South Africa and India have delayed shutdowns over concerns about cutting off phone access for millions. According to GSMA Intelligence, 61 countries have planned or initiated 2G network shutdowns to enhance bandwidth and reduce maintenance costs. For 2.5 billion people worldwide, smartphones cost about 30% of monthly income, keeping basic phones essential despite declining global feature phone sales.

Read more of this story at Slashdot.

msmash