Synapse’s chief executive has accused its primary bank partner, Evolve Bank, of mishandling customer funds. Evolve has said the fault lies with Synapse. Evolve Bank normally paid Synapse interest on the deposits it held at the bank, much like any bank would. Synapse would then take a cut of that payment as a fee and allocate the rest to customers, who were earning interest on their savings through apps like Yotta and Yield Street. About a year before Synapse’s bankruptcy, Medeiros told Kroll that the firm hadn’t been filling customer accounts with the full interest they were due, leaving them more than $3 million short as of the middle of 2023. He transferred some of Synapse’s own funds to try to bridge the gap, but told Kroll that there was still a $3-million shortfall, some of the people said.

https://www.wsj.com/finance/banking/synapse-missing-fund-scandal-grand-jury-investigation-e8afc1a9?mod=Searchresults_pos1&page=1