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      "text": "News Reports Related to Synapse Bankruptcy and Customer Disruption Highlight BaaS Business Risks",
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      "text": "Synapse filed for Chapter 11 bankruptcy protection in April and has shut down its services to some of its fintech or bank partners, including Evolve Bank & Trust. That has caused disruptions for customers of Synapse's partners, leading to accounts being frozen or showing funds not existing at all.",
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      "text": "Synapse's shutdown has \"needlessly jeopardized end users by hindering our ability to verify transactions, confirm end user balances, and comply with applicable law,\" said Memphis-based Evolve in a statement last week. Because Evolve is a bank and is required to comply with banking laws, it has to make sure all customer deposits are accounted for to the penny, which may take time.",
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      "text": "Last week, lawyers for the banking-as-a-service startup told a judge that the company, which had been serving 100 fintechs with 10 million customers, was working around the clock to wind down and solve account access problems.",
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      "text": "Banking-as-a-service fintech Synapse declared bankruptcy in April, and the company's demise has clearly disrupted life for the customers of its financial partners.",
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      "text": "Tech companies found a way to sell FDIC-backed accounts without being banks—then one firm lost track of customers' money.",
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      "text": "I wanted to bring to your attention that Synapse has made no attempt to reach out to any of our platforms (our Fintech customers) or their end-users, the email reads. From my understanding, the additional time you granted Synapse to operate was to give us time to put into place an orderly wind down process. To date, there is no process in place and as I indicated already, no communication other than what has been reported publicly. Synapse did not reply to Forbes' request for comment.",
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      "text": "NEW YORK (AP) — The bank accounts of tens of thousands of U.S. businesses and consumers have been frozen in the aftermath of the abrupt shutdown and bankruptcy of financial technology company Synapse, which acts as a middleman between financial technology companies and banks.",
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      "text": "You realize it's something that's actually much more fragile than it appears to be and based on an area that very few people are really paying attention to, says Hans Morris... And when it fails, it fails catastrophically.",
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      "text": "Source: Forbes, Associated Press, Bloomberg, Spruce Point Research",
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