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Fintech middleman Synapse bankruptcy trustee Jelena McWilliams revealed that around $85 million of customer savings are missing. She shared this alarming information in a status report filed on Thursday, June 6.

Synapse Bankruptcy Update: Trustee Claims $85M of Customer Savings Missing

Court-appointed trustee Jelena McWilliams, the former Federal Deposit Insurance Corp. chair, explained that fintech consumers who used Synapse to link up with banks had around $265 million in balances.

However, she said the bank only had $180 million linked with those accounts, as reported by CNBC. Synapse and its fintech partners, including Evolve Bank & Trust, are accused of improperly transferring balances or keeping incorrect ledgers at each other.

But all of them lobbied for these allegations. Jelena Williams's court filing is a big deal in the bankruptcy case because it is the first outside attempt to identify the scope of missing funds.

Restoring Access To Missing Synapse Customer Savings Will Be Hard

According to PYMNTS, restoring access to missing customer savings in the Synapse bankruptcy will be very challenging. This is because these missing funds are in the middle of a tangled web of bank accounts, fund flows, fintech accounts, and ledgers.

But, the filing promised that the trustee and the court would focus on prioritizing restoring access to end-user funds. It added that efforts to uncover what caused the freezing of end-user accounts and reconciliation issues will continue.

Since Jelena McWilliams was appointed as the trustee for the Synapse bankruptcy, she has worked with AMG National Trust, Lineage Bank, American Bank, and Evolve to help customers regain access to their funds by reconciling various ledgers.