The Consumer Financial Protection Bureau said it has uncovered potentially unfair practices by bankrupt Synapse Financial Technologies Inc. that resulted in a $95 million shortfall for customers.
The federal consumer finance watchdog asked that Synapse’s Chapter 11 bankruptcy proceedings be converted into a Chapter 7 liquidation, according to a statement of interest the CFPB filed in the US Bankruptcy Court for the Central District of California on June 20.
CFPB investigators have determined that San Francisco-based Synapse may have engaged in “unfair” practices that resulted in customers of fintechs such as Yotta Technologies Inc. and cryptocurrency exchange Juno being locked ...
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