The feds need to come crashing down on operations like this. Perhaps you should need to be an accredited investor before you can put your $280K nest egg into a poorly regulated not-bank offering 'prize linked savings' accounts.
But a few months before the bankruptcy, Evolve pushed Synapse to move the money into non-FDIC insured brokerage accounts. As far as I can tell, this was:
- a way to move a hole in the balance sheet from an FDIC insured to an uninsured place
- completely illegal, insofar as the only user consent was a manual opt-out, and some users weren't even sent emails about the change.
Otherwise, FDIC insurance wouldn’t matter here, no?
Where can I read more?
(Also presumably if you have a bunch of money you did get it somehow…)
debt is a great thing as long as you make money from that debt (you don’t pay taxes on the debt either) :)