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The feds need to come crashing down on operations like this. Perhaps you should need to be an accredited investor before you can put your $280K nest egg into a
by rootusrootus 2y ago
The feds need to come crashing down on operations like this. Perhaps you should need to be an accredited investor before you can put your $280K nest egg into a poorly regulated not-bank offering 'prize linked savings' accounts.
- ctbeiser 2y agoThe accounts were genuinely FDIC insured. Evolve is a real bank. But a few months before the bankruptcy, Evolve pushed Synapse to move the money into non-FDIC insured brokerage accounts. As far as I can tell, this was: - a way to move a hole in the balance sheet from an FDIC insured to an uninsured place - completely illegal, insofar as the only user consent was a manual opt-out, and some users weren't even sent emails about the change.
- lxgr 2y agoWhy would they do that? Are you implying that Evolve (and not Synapse) had a hole in their balance sheet? Is there any evidence of that? Otherwise, FDIC insurance wouldn’t matter here, no?
- hipadev23 2y ago> Evolve pushed Synapse to move the money into non-FDIC insured brokerage accounts Where can I read more?
- bryan0 2y agoThe “accredited investor” thing always seemed like a scam to me. Like if you have a lot of money we will trust that you know how to invest, otherwise we won’t let you.
- jitl 2y agoIf you have a million dollars and accrue a debt of $500,000 you are solvent. If you have $20,000 and accrue a debt of $500,000, you are bankrupt and your debtors take a big loss and everyone is sad. (Also presumably if you have a bunch of money you did get it somehow…)
- bdangubic 2y ago$20k with $500k debt is a whole lot of airbnb enterprenuers racking in serious dough. debt is a great thing as long as you make money from that debt (you don’t pay taxes on the debt either) :)