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The prize aspect of Yotta is irrelevant to the issue of missing funds. Theoretically this could happen with any fintech
by financetechbro 2y ago
The prize aspect of Yotta is irrelevant to the issue of missing funds. Theoretically this could happen with any fintech
- dylan604 2y agoIt's not exactly irrelevant, as it does signal someone gamifying finance which just raises all sorts of red flags for me. At that point, I'd be much more suspicious of anything else they said. This isn't a free toaster. This is someone playing with money in a way that is just suspect. After all of that to then find out that the company isn't a bank yet claims FDIC insured while using a 3rd party to handle to the money because they aren't actually licensed for that while still claiming to be a bank? It's so bewildering I'm typing run on sentences
- kiba 2y agoIt's literally just interest rate disguised as prizes. A real bank is handling the money behind the scene and that's where the money is insured.
- dylan604 2y agoSeriously? If it was insured, we wouldn't be in this place of customers losing all of their money. So whoever claimed they were insured lied.
- bot403 2y agoThe money is insured by the FDIC against bank failure. The actual banks holding the money didn't fail. The money is still there. The problem is its in a big unlabeled pile so they don't know whose money is whose and how much each person has. Note that fail here has a very specific meaning - as in the banks doesn't have the funds to give you your deposit back. Not fail as is "something went horribly wrong".
- dylan604 2y agoYour fine parsing of the words does nothing at all about getting the customers access to their money.
- jowea 2y agoI only superficially paid attention to this news but didn't Yotta end up going from "bank with sweepstakes" to "bank with a casino" quite quickly?