Synapse Brokerage

Synapse Brokerage is a third‐party service that facilitates transactions between fintech applications and banks. It has been noted in reports concerning missing funds, highlighting its role as an intermediary in digital financial transactions.

CCI Score

-57.51

0.17% May 31

Latest Event

Regulatory Overhaul Following Synapse Bankruptcy Raises Concerns Over Financial Practices

In the wake of the Synapse-related bankruptcy that disrupted consumer access to funds, the FDIC has proposed stricter recordkeeping requirements for bank-sponsored fintech services. This regulatory shift calls into question the ethical and structural integrity of financial intermediaries like Synapse Brokerage, particularly in light of repeated reports concerning missing funds and mismanagement of digital transactions.

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QUISLING

Synapse Brokerage is currently rated as a Quisling.

-44 to -59 CCI Score

These companies are fully aligned with authoritarian regimes. They not only support but also enforce oppressive policies, playing a significant role in the regime’s operational apparatus and contributing directly to its consolidation of power.

Latest Events

SEP

23

2024

Regulatory Overhaul Following Synapse Bankruptcy Raises Concerns Over Financial Practices
-62.24

In the wake of the Synapse-related bankruptcy that disrupted consumer access to funds, the FDIC has proposed stricter recordkeeping requirements for bank-sponsored fintech services. This regulatory shift calls into question the ethical and structural integrity of financial intermediaries like Synapse Brokerage, particularly in light of repeated reports concerning missing funds and mismanagement of digital transactions.
-80

Business Practices and Ethical Responsibility

March 22

The bankruptcy linked to Synapse and repeated reports of missing funds expose significant ethical lapses in managing customer assets. Such failures call into question the responsibility and transparency of fintech intermediaries, revealing business practices that compromise consumer trust and may indirectly enable systemic authoritarian tendencies through weak regulatory oversight.

Synapse Failure Spurs FDIC To Specify Record Keeping for Bank-Sponsored Fintechs
-50

Economic and Structural Influence

March 22

The economic fallout from the bankruptcy resulted in substantial consumer harm and a forced regulatory response that imposes significant operational burdens on financial institutions. This incident underscores structural vulnerabilities in the fintech ecosystem, illustrating how mismanagement can lead to systemic risks and a reliance on authoritarian regulatory interventions.

Synapse Failure Spurs FDIC To Specify Record Keeping for Bank-Sponsored Fintechs
SEP

18

2024

Synapse Failure Prompts Regulatory Overhaul in Fintech Partnerships
-65.28

Following the collapse of Synapse's record-keeping and fund management practices, the FDIC's proposed regulation underscores serious deficiencies in business ethics that have prompted calls for tighter oversight of fintech intermediaries.
-70

Business Practices and Ethical Responsibility

October 1

Synapse Brokerage's failure to maintain accurate subledgers and commingle customer funds demonstrates a severe lapse in ethical business practices. This mismanagement not only harmed customers financially but also forced regulatory bodies to impose new oversight standards. Such irresponsible conduct undermines consumer trust and reflects broader systemic issues within fintech intermediaries, contributing to an environment where authoritarian regulation might become necessary.

FDIC to Regulate Fintech and Bank Partnerships After Synapse Failure
MAY

01

2024

Financial Collapse and Missing Funds Scandal
-45.00

Synapse Brokerage has been implicated in a financial collapse that led to over $100M in customer funds being frozen, with legal disputes alleging that the company’s mismanagement of digital transactions played a central role in the crisis.