These days, many people choose to keep their money in online banks, which offer lower fees and higher interest rates along with traditional features like FDIC insurance. In recent months, however, the online banking landscape has been rocked by the collapse of an intermediary firm that manages online banking services for various digital banks and lenders. This crisis has left countless depositors in limbo, unable to access their funds and uncertain about the security of their savings. Many of these online banking platforms, such as Juno, Yieldstreet, and Yotta, claimed that savings deposits would be covered by FDIC insurance. However, the recent bankruptcy of Synapse Technology has exposed vulnerabilities in this model. Customers of these online banks, despite believing their deposits were protected by FDIC insurance, have found themselves unable to withdraw their funds as promised. This situation underscores the importance of understanding the true nature of financial services offered by online entities and the risks involved.

At Colson Hicks Eidson, we understand the distress and confusion facing individuals who entrusted their money to these online financial platforms. As a firm with experience in consumer protection generally, and having represented account holders and investors in a variety of actions against banks and financial institutions specifically, we are actively investigating cases related to these online banking failures. Our goal is to ensure that affected depositors receive the legal guidance and representation needed to navigate these complex circumstances.

If you or someone you know has been impacted by the collapse of online banking services or has concerns regarding the safety of their deposits, don’t hesitate to reach out to us. Your initial consultation is free and confidential.