According to Odaily, Synapse, a BaaS financial technology company, is facing liquidation after initially raising over $50 million in funding. This includes a $33 million Series B round led by Angela Strange of Andreessen Horowitz in 2019. The startup fell into difficulties in 2023 due to layoffs and filed for bankruptcy protection in April of this year, seeking to sell its assets to another fintech company, TabaPay, for $9.7 million. However, this proposal was rejected, and the reasons remain unclear.
Synapse operates a service that allows other companies, primarily fintech firms, to embed banking services into their products. The company is now almost forced to liquidate under Chapter 7, and many other fintech companies and their customers are being affected by Synapse's collapse. Industry observer and author of 'Fintech Business Weekly', Jason Mikula, estimates that based on the documents submitted by Synapse, as many as 100 fintech companies and 10 million end customers could be affected by the company's collapse.
The funds of crypto application Juno were also affected by Synapse's bankruptcy. A teacher from Maryland named Chris Buckler stated in a document dated May 21 that he was unable to use his funds held in Juno due to issues related to Synapse's bankruptcy.