CFPB to Send $46 Million to Synapse Victims as Fund Runs Low

The Consumer Financial Protection Bureau said it will distribute just over $46 million to thousands of people who haven’t been able to access their money since the failure of bank-fintech middleman Synapse Financial Technologies Inc. last year, around half of what was estimated to be locked up in bank accounts.

The CFPB plans to use money from its Civil Penalty Fund to compensate customers of financial technology companies such as Yotta Technologies Inc. after their accounts were frozen following Synapse’s bankruptcy in April 2024, according to a Nov. 28 allotment decision posted this week on the agency’s website. ...