
The collapse of fintech middleman Synapse was caused by a combination of factors, including poor record-keeping, insolvency, and disputes with partner banks. The company's failure to maintain accurate financial records and the subsequent inability to reconstruct account information has made it difficult to determine who is owed what, leading to a likely shortfall of funds and hindering repayment efforts.

More than 100,000 customers of fintech apps like Yotta, Juno, and Copper have been locked out of their accounts since May due to the collapse of fintech middleman Synapse1.