Bankrupt Fintech Synapse Asks to Liquidate Instead of Reorganize

A trustee for bankrupt financial-technology firm Synapse Financial Technologies Inc. has asked to convert its Chapter 11 case into liquidation, or dismiss the matter entirely, after the fintech failed to find a buyer for its assets.

San Francisco-based Synapse filed for bankruptcy in April 2024, resulting in a number of frozen funds from customers who worked with a litany of its finance app partners, including Yotta Technologies Inc., cryptocurrency exchange Juno and alternative investment platform Yieldstreet Inc.

Synapse’s asset auction deadline of November passed with no viable bidders, and it now has no funds left to support ...