Beware of "financial services" and "banking services" apps, kids! They aren't an actual bank and don't play by the same rules.
If you are going to use anything except your bank/CU's app to move money around, use it as a pass through to your bank/CU, and not as your primary source of funds, or your primary way to access funds.
Paypal is not a bank.
Yotta is not a bank.
Zelle is not a bank.
Venmo is not a bank.
Chime is not a bank.
Coinbase/Kracken/Cyrpto.com is not a bank.
These are "financial services" or "banking services" companies, and do not have the same requirements that a bank (CU, or Brokerage) has to keep your money safe or allow you to access your money. They are minimally regulated and leave you with little recourse if something goes wrong.
What is going on with the collapse of banking services company Synapse and its impact on everybody who uses Yotta is a case in point.
And in the case of those who use Yotta? Well, their money IS being held in Evolve Bank, so it's safe, but it can't be accessed until the legal dispute between Evolve and Synapse is sorted out and ledgers are reconciled, leaving people with no access to their money.
And, since there is very little oversight of the "fin tech" industry, there's pretty much nobody to turn to.
Youtuber Coffeezilla has a pretty good breakdown on the problems with Yotta and what is going on.
