Progress Made in Ongoing Dispute Between Evolve and Synapse

According to Odaily, on May 24, 2024, a significant hearing was held in a U.S. federal court regarding the ongoing dispute between Evolve and Synapse. Although the dispute remains unresolved, substantial progress was made during the hearing. Jelena McWilliams, former chairperson of the Federal Deposit Insurance Corporation (FDIC), has been appointed as the Chapter 11 trustee for Synapse. The court has instructed Trustee McWilliams to prioritize ensuring that end-users can access their funds. Additionally, the court has requested that the U.S. trustee provide regular weekly updates on progress. Crypto application Juno is committed to cooperating with Trustee McWilliams, providing all necessary support, resources, and information to facilitate the rapid access of funds by its end-users. The company will promptly notify users of any significant developments. Previously, Synapse, a Banking as a Service (BaaS) fintech company, had raised over $50 million in funding since its inception, including a $33 million Series B round led by Angela Strange of a16z in 2019. The company fell into trouble 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, but was rejected. The company is now almost forced to liquidate completely under Chapter 7. According to documents submitted by Synapse, as many as 100 fintech companies and 10 million end customers, including Juno, could be affected by the company's collapse.