Mercury: Synapse's largest client and its departure

analysisMercury Technologies, Inc., backed by Andreessen Horowitz, was Synapse's largest client. Former employees told the business press that it grew to around 60% of Synapse's revenue at its peak; Pathak put its share at about 35% of the business in September 2023. Both figures are informal estimates. ¹

analysisAccording to Synapse, Mercury gave notice on September 25, 2023, the day of Evolve's breach notice, that it would not renew, and two days later Mercury and Evolve said they would move more than $3 billion of Mercury depositor funds to a direct Evolve program; a technology-press timeline dates the end of both Evolve's and Mercury's relationships with Synapse to October 13, 2023. FINRA found that Synapse's biggest customer, a fintech with about $3 billion at the first deposit bank, began partnering directly with that bank around October 2023, in findings of its Paverman settlement order that name neither company, were consented to without admission or denial and bind no one else. Mercury said that after its experience with Synapse it had concluded that direct relationships and integrations with its partner banks were in the long-term interest of Mercury and its customers. ^{1 2 3 4 5}

analysisSynapse confirmed on October 6, 2023 that it had laid off 86 people, about 40% of its staff, four months after cutting 18% of its workforce. A 2025 business-press report, describing the loss of Evolve and Mercury as a perfect storm, said Synapse's revenue had been cut by more than a third and put the October layoffs at more than 100, a figure that differs from the company's own. ^{2 5}

analysisSynapse alleged in a May 2024 court filing that in the two weeks after the September notices Mercury and Evolve improperly transferred more than $49 million of Synapse-related depositor funds into Mercury's direct program without Synapse's review or participation. FINRA, in its Paverman settlement order, whose findings were consented to without admission or denial, bind no other respondent and name neither the bank nor the fintech, records this only as Synapse's contention. Mercury strenuously denies it: its spokesperson said that, despite the lack of evidence provided by Synapse's former chief executive, Mercury investigated the claim fully, found no evidence to support it and did not over-migrate any funds. ^{1 2 3}

analysisOn December 11, 2023 Mercury petitioned the San Francisco Superior Court for provisional relief in connection with an arbitrable controversy with Synapse, claiming according to a business-press report that Synapse had withheld $30 million in revenue; according to the same report Synapse countersued for more than $36 million, and Synapse told the bankruptcy court it had substantial claims against Mercury. Neither side's filings are retained, and no ruling or settlement appears in the record; in June 2025 the trustee reported having looked for financing, including contingency counsel, to pursue any claims. In June 2024 the trustee also said that reconciliation was likely to show a shortfall predating the bankruptcy, as Pathak had reported in a May 9, 2024 post on Mercury reconciliation issues. ^{4 5 3 6}

analysisSeparately from Synapse, Mercury settled with the California DFPI, whose Commissioner found that its @bankmercury handle, website phrases such as "building a bank for startups" and use of the FDIC logo violated California law on the use of the word bank; Mercury agreed to stop using the word bank or banking in its name or handle, and to stop using the FDIC logo in a misleading manner. Chief executive Immad Akhund signed on December 24, 2021, and Mercury neither admitted nor denied the findings. ¹

analysisA trade-newsletter headline of September 7, 2025 reported, citing sources, an FBI inquiry into Evolve's fintech program with Mercury among the programs under scrutiny. Only the headline and subheading are retained, with no confirmation by the FBI, Evolve or Mercury and no charge. ²