A major US bank is facing a lawsuit for allegedly stealing millions from its customers. The lawsuit claims the bank engaged in shady practices that worsened a financial crisis affecting thousands of people.
The Allegations
Yotta Technologies, a financial tech company, is suing Evolve Bank & Trust, accusing them of fraud, conspiracy, and negligence. Yotta used Evolve to hold customer funds for its high-yield savings accounts. However, when Evolve’s partner, Synapse, went bankrupt in May 2024, things went south.
Eighty-five thousand Yotta customers were locked out of their accounts, losing access to a total of $112 million. Yotta alleges that Evolve secretly moved over $25 million from customer accounts without permission. These transfers, including direct payments to the now-bankrupt Synapse, allegedly violated banking regulations and basic ethical standards. Yotta claims this unauthorized activity contributed to a total shortfall of between $65 and $95 million.
Yotta’s statement highlights that Evolve never informed them or their customers about these transactions. They argue Evolve had no right to take this money.
Evolve’s Response and Repayment Efforts
Evolve Bank blames its partner, Synapse, for providing inaccurate account information. They have begun repaying some customers, but the process is slow. So far, around $11 million has been returned to 13,300 customers—that’s about 18 cents on the dollar of what they are owed. A total of $59 million is still outstanding.
Disclaimer: This information is for news purposes only and is not financial advice. Always conduct your own research before making any investment decisions.
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