There’s a Forbes article that cites the FDIC stating that you are only covered if you open a bank account in your name - which isn’t the case here for all these users. And they further warned to not use these neobanks for every day banking.

Since synapse isn’t a bank, technically there hasn’t been a bank failure so fdic doesn’t step in.

There’s over 128BB in the fdic fund so we can easily bail these customers out. But they should figure out if it’s fraud or what not.