Technology

what surprised me about this, is, with as much money that's at stake, how the hat couldn't have been passed around to the stakeholders, to fund, then get the court to order an accounting using the plaintiffs forensic accountants. something about that doesn't make any sense to me at all.

I'd be broke a long time ago if I lived the US. Good thing I'm French and a surgery for a life threatening condition, plus 4 month of rehabilitation, costed me a whopping 0€.

I like your style

Dont they have to write in the footer WE ARE NOT A BANK

Usually that's what I look for

American credit unions are not insured by the FDIC and won't appear there. They are insured by the NCUA.

Or, alternative idea...

MAGACOIN GET YOUR MAGACOIN HERE

Exactly. The combination of "bank" and "startup" is innately terrifying. Don't put more money than you can afford to lose in a place like that.

(Aren't there any laws in the US regarding who can call themselves a bank? Or is this another case of Americans being unwilling to do something sane and obvious because some politician has convinced them it will infringe on their "freedom"?)

Might as well be a gambling site: It was a startup bank with no Federal backing (FDIC) that appears to have promised greater returns than traditional banks by investing your money and giving you some of the profits back from dividends.

Still, it was a startup that wasn't fully vested nor backed federally to secure people's deposits. Sad.

There was no interest on Yotta accounts. Originally, when you signed up, you were given a lottery ticket everyday for every 25$ in the account. There was a lottery everyday where you could win up to 25000. Then they switched to games where you essentially gambled with the tickets that were given based on your amount.

I was once a member but pulled the money when interest rates started to rise. I was lucky.

I'll also note, when signing up, I was given the impression this FDIC insured.

This isn't about shareholders being wiped out. It's about account holders of what they thought were bank accounts losing everything because their accounts were powered on the back end by a company they'd never heard of or directly dealt with.

If you see this as investment, then consider that investors were lied to (the startups claimed to have FDIC coverage) and didn't have accurate information to assess the risk.

Read the article, and maybe don't be such a heartless bastard?

Several people CNBC interviewed said signing up seemed like a good bet since Yotta and other fintechs advertised that deposits were FDIC-insured through Evolve.

“We were assured that this was just a savings account,” Morris said during last week’s hearing. “We are not risk-takers, we’re not gamblers.”

They changed to a cash sweep / brokerage model (not FDIC-insured at the individual account holder level) like 6 months before the bankruptcy. End users had to click a consent checkbox or the like and probably thought nothing of it.