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Synapse Financial Technologies: the collapse of a banking-as-a-service provider

Synapse Financial Technologies: participants and roles

Subsidiaries, founders, investors, directors, officers, partner banks, lenders, fintech clients, regulators and parties to proceedings connected with Synapse Financial Technologies, with the period and source of each role.

published
17 oct 2026
records as of
15 oct 2026
entities
61
sources
103
cite entities.csv
Lead investor, Series BSweep-network operator for the brokerage's program banksChief executive officerHolder of brokered sweep deposits from Synapse BrokeragePartner bank (2021 contract); held sweep deposits and issued debit cards for five fintech partnersOmnibus and sweep bank of the cash management program (accounts in the brokerage's name)Bank with which Copper coordinated the return of customers' moneyProgram bank holding FBO accounts for Synapse Brokerage and its end users; ACH and wire processing from February 2024Registered bank holding company (owns and controls the bank)Retained by the trustee for forensic accounting and management of the estatePlaintiff in an adversary proceeding ending in a stipulated final judgmentFintech platform client (SynapseFi as backend software provider)Co-lead investor, Series A; investor in the Series BLicensing regulator that issued a notice of intent to refuse renewal of the small loan licenceRegulator that accused the firm and revoked its broker-dealer certificateRegulator that revoked its California Financing Law licenceRegulator that settled with Mercury over bank-like marketingRegulator that entered a consent order with a $1,000,000 penaltyChief human resources officerChief executive officerPayment processing for Synapse Brokerage; bank from which program funds were swept into the brokerage programPartner bank and issuer of Copper-branded debit cardsPartner bank of Mercury's direct program (deposits moved from Synapse)Partner bank: program deposit accounts and FBO accounts, debit cards and payment processingBank of Yotta's program accounts and debit-card issuer (no direct contract with Yotta)Federal supervisor; issued a consent orderFederal supervisor of the holding company; issued a cease-and-desist order by consentFederal supervisor; issued a cease-and-desist order by consentSelf-regulatory organisation that suspended and then expelled the firmDisciplinary complainant; accepted his offer of settlementDisciplinary complainant; accepted his offer of settlementAcquirer of Silicon Valley Bank after its receivershipSenior secured lender as successor to SVB; holder of Synapse's primary operating accountsGeneral counsel (earlier associate general counsel)Early partner bank; holder of a Synapse deposit account under a control agreement for TriplePointFintech platform clientEngaged to help with the Synapse reconciliationDirector and member of the member-managed LLCCo-founder; led compliance and sat on the board in the early years (+1)Largest listed unsecured creditor ($473,662.28, as Kroll Associates, Inc.) (+1)Co-founderFounder, chief executive and chairman of the boardFounder and chairman of the boardACH processing for Synapse Brokerage accountsListed unsecured creditor ($276,812.26, disputed) (+1)Director and member of the member-managed LLCDirectorSeed investorPartner (the firm represented her as trustee)Chair (21st)Chapter 11 trusteeCorporate controller; senior director in the finance departmentFintech platform client (Synapse's largest client) (+1)Co-founder, former chief executive officer and directorSame registered address (101 2nd St, Suite 1500, San Francisco)Regulator that entered a consent order on unlicensed money transmission (Case No. 16-041)Control person (also its indirect owner through Synapse)OfficerCo-founder and chief executive (president in the Florida registration)Business rapport credited with building the Synapse–Evolve partnershipPresident and member of the member-managed LLCDirector (+2)President and chief executive on the firm's records, then chief compliance officer (outside part-time consultant)Head of operations, later titled co-founder (+1)Officer; chief financial officer and chief business officerOfficer; chief financial officerDirector (Trinity Ventures)Venture partnerFounder and managing partner (managing member of the general partner of Core Innovation Capital III, L.P.)Director (Core Innovation Capital)Co-founderPresident and chief executive officerGeneral securities principal; chief executive and president (functionally chief executive before December 2023)EmployeeGeneral partner (earlier partner)Director (Andreessen Horowitz)Lender (Synapse Credit was a co-borrower)Senior secured lender (co-borrower Synapse Credit)Parent company (sole owner)Parent company (sole owner)Opposing party in the dispute over FBO funds, fees and reserves, the failed settlement and the bankruptcy motionsSame registered address (101 2nd St, Suite 1500, San Francisco)Lender of two loans to Pathak totalling $320,000Successor company (Synapse Payments, LLC renamed on conversion to a corporation)Listed unsecured creditor ($67,500.02) (+1)Lender under a growth capital loan (+1)Co-lead investor, Series A; investor in the Series BCollateral agent and secured lenderOne of Synapse's first two partner banksDirector and member of the member-managed LLCInitial investor (with Doug Marchant, $700,000 in total)Part-time chief financial officer services (independent contractor, Ascent CFO Solutions)President of open bankingFintech platform clientPlaintiff (claims voluntarily dismissed January 23, 2025)Fintech whose customers' savings accounts were moved into the brokerage programFintech whose users were offered lending services through Synapse CreditListed unsecured creditor ($65,172.33) (+2)Plaintiff in suits over its customers' fundsImmad AkhundImmad AkhundTriplePointVenture Growth BDCCorp.TriplePoint Venture Growth BDC Corp.B. Scot LenoirB. Scot LenoirCopperCopperEvolve Bancorp,Inc.A15Evolve Bancorp, Inc.A15: Federal Reserve cease-and-desist order by consent (June 2024)Board of Governorsof the FederalReserve SystemBoard of Governors of the Federal Reserve SystemScott StaffordScott StaffordCore InnovationCapitalCore Innovation CapitalArjan SchütteArjan SchütteBryan KeltnerBryan KeltnerTabaPay, Inc.TabaPay, Inc.MercuryTechnologies, Inc.A6 · A22Mercury Technologies, Inc.A6: Mercury petition and Synapse counterclaims over withheld revenue (from December 2023) · A22: DFPI settlement over use of the word "bank" and the FDIC logo (2022)AMG National TrustBankA20AMG National Trust BankA20: Consumer class actions over Synapse-related funds (pending; summary-judgment motion undecided)Evolve Bank &TrustA14 · A15 · A18 · A19Evolve Bank & TrustA14: Accusations by Synapse, other banks and fintech clients over its handling of end-user funds (disputed by Evolve) · A15: Federal Reserve cease-and-desist order by consent (June 2024) · A18: Yotta suits alleging fraud (2024-2026): federal case dismissed for failure to join Synapse and appealed; state case pending · A19: Consumer class actions over Synapse-related funds (pending; no finding of liability)CaliforniaDepartment ofFinancialProtection andInnovationCalifornia Department of Financial Protection and InnovationSilicon ValleyBankSilicon Valley BankFirst-CitizensBank & TrustCompanyFirst-Citizens Bank & Trust CompanyHank WordHank WordDoug MarchantDoug MarchantHillary QuirkHillary QuirkSynapse FinancialTechnologies, Inc.A1 · A2 · A3 · A4 · A5 · A6 · A7 · A8 · A9Synapse Financial Technologies, Inc.A1: Chapter 11 filing (April 2024); case dismissed November 2025 · A2: End-user funds shortfall of $65-95 million against its ledger (trustee estimate; cause not established) · A3: CFPB complaint and stipulated judgment (2025): allegations neither admitted nor denied; $1 penalty and industry ban · A4: New Hampshire consent order on unlicensed money transmission (2020) · A5: Named defendant in a putative RICO class action (2026); no ruling on the merits · A6: Mercury petition and Synapse counterclaims over withheld revenue (from December 2023) · A7: Reported federal grand-jury investigation (2025); no charge in the record · A8: Partner banks' and a former employee's accounts of inaccurate ledgers and statements (disputed by Pathak) · A9: Former employees' discrimination suit reported by the press (around 2019), settled without a findingAmerican BankAmerican BankYottaTechnologies, Inc.A23Yotta Technologies, Inc.A23: DFPI consent order: $1 million penalty for deceptive FDIC-insurance claims (2026)Angela StrangeAngela StrangeSynapse Credit LLCA12 · A13Synapse Credit LLCA12: DFPI revocation of California lending licence (2024) · A13: Connecticut notice of intent to refuse small loan licence renewal (2022)Michael RasicMichael RasicConnecticutDepartment ofBankingConnecticut Department of BankingSynapse Payments,LLCSynapse Payments, LLCJeffrey WebbJeffrey WebbSankaet PathakA5 · A9Sankaet PathakA5: Named defendant in a putative RICO class action (2026); no ruling on the merits · A9: Former employees' discrimination suit reported by the press (around 2019), settled without a findingSynapse BrokerageLLCA5 · A10 · A11Synapse Brokerage LLCA5: Named defendant in a putative RICO class action (2026); no ruling on the merits · A10: FINRA suspension (March 2025) and expulsion (June 2025) · A11: DFPI accusation (2024) and revocation of broker-dealer certificate (2025)Lineage BankA19 · A21Lineage BankA19: Consumer class actions over Synapse-related funds (pending; no finding of liability) · A21: FDIC consent order on third-party and fintech risk management (January 2024)AndreessenHorowitzAndreessen HorowitzSynapse Money LLCSynapse Money LLCIndependent BankIndependent BankTriumph BankTriumph BankTrinity VenturesTrinity VenturesSchwark SatyavoluSchwark SatyavoluKrollKrollJeffrey AlanStanleyA5 · A16Jeffrey Alan StanleyA5: Named defendant in a putative RICO class action (2026); no ruling on the merits · A16: FINRA complaint (2025) and settlement without admission: 12-month principal suspension (2026)Ben DoyleBen DoyleAmerican DepositManagement CompanyAmerican Deposit Management CompanyVictor MedeirosVictor MedeirosB. RileyFinancial, Inc.B. Riley Financial, Inc.Jack DoanJack DoanJunoJunoYieldstreetYieldstreetConsumer FinancialProtection BureauConsumer Financial Protection BureauFinancial IndustryRegulatoryAuthorityFinancial Industry Regulatory AuthorityTriplePointCapital LLCTriplePoint Capital LLCFederal DepositInsuranceCorporationFederal Deposit Insurance CorporationJelena McWilliamsJelena McWilliamsCravath, Swaine &Moore LLPCravath, Swaine & Moore LLPAdam MoelisAdam MoelisNew HampshireBanking DepartmentNew Hampshire Banking DepartmentTracey GuerinTracey GuerinPam WismerPam WismerMark ElliotPavermanA5 · A17Mark Elliot PavermanA5: Named defendant in a putative RICO class action (2026); no ruling on the merits · A17: FINRA complaint (2025) and settlement without admission: 12-month suspension and $20,000 fine (2026)Arjun SethiArjun SethiFoundationRobotics LabsA24Foundation Robotics LabsA24: Reported exaggerated General Motors claims in a 2024 fundraising pitch (GM: fabricated; co-founder confirmed)Mike LeBlancMike LeBlanc

Solid line: documented. Amber dashed: reported. Grey dotted: hypothesis. One arrow: the relationship as stated; two arrows: reciprocal; no arrow: symmetric. A path between two parties does not transfer an allegation from one to the other.

every party and relationship in full, as text ↓

Information markers
  • A1 · Chapter 11 filing (April 2024); case dismissed November 2025 — Synapse Financial Technologies, Inc.
  • A2 · End-user funds shortfall of $65-95 million against its ledger (trustee estimate; cause not established) — Synapse Financial Technologies, Inc.
  • A3 · CFPB complaint and stipulated judgment (2025): allegations neither admitted nor denied; $1 penalty and industry ban — Synapse Financial Technologies, Inc.
  • A4 · New Hampshire consent order on unlicensed money transmission (2020) — Synapse Financial Technologies, Inc.
  • A5 · Named defendant in a putative RICO class action (2026); no ruling on the merits — Mark Elliot Paverman
  • A6 · Mercury petition and Synapse counterclaims over withheld revenue (from December 2023) — Mercury Technologies, Inc.
  • A7 · Reported federal grand-jury investigation (2025); no charge in the record — Synapse Financial Technologies, Inc.
  • A8 · Partner banks' and a former employee's accounts of inaccurate ledgers and statements (disputed by Pathak) — Synapse Financial Technologies, Inc.
  • A9 · Former employees' discrimination suit reported by the press (around 2019), settled without a finding — Sankaet Pathak
  • A10 · FINRA suspension (March 2025) and expulsion (June 2025) — Synapse Brokerage LLC
  • A11 · DFPI accusation (2024) and revocation of broker-dealer certificate (2025) — Synapse Brokerage LLC
  • A12 · DFPI revocation of California lending licence (2024) — Synapse Credit LLC
  • A13 · Connecticut notice of intent to refuse small loan licence renewal (2022) — Synapse Credit LLC
  • A16 · FINRA complaint (2025) and settlement without admission: 12-month principal suspension (2026) — Jeffrey Alan Stanley
  • A17 · FINRA complaint (2025) and settlement without admission: 12-month suspension and $20,000 fine (2026) — Mark Elliot Paverman
  • A14 · Accusations by Synapse, other banks and fintech clients over its handling of end-user funds (disputed by Evolve) — Evolve Bank & Trust
  • A15 · Federal Reserve cease-and-desist order by consent (June 2024) — Evolve Bancorp, Inc.
  • A18 · Yotta suits alleging fraud (2024-2026): federal case dismissed for failure to join Synapse and appealed; state case pending — Evolve Bank & Trust
  • A19 · Consumer class actions over Synapse-related funds (pending; no finding of liability) — Lineage Bank
  • A20 · Consumer class actions over Synapse-related funds (pending; summary-judgment motion undecided) — AMG National Trust Bank
  • A21 · FDIC consent order on third-party and fintech risk management (January 2024) — Lineage Bank
  • A22 · DFPI settlement over use of the word "bank" and the FDIC logo (2022) — Mercury Technologies, Inc.
  • A23 · DFPI consent order: $1 million penalty for deceptive FDIC-insurance claims (2026) — Yotta Technologies, Inc.
  • A24 · Reported exaggerated General Motors claims in a 2024 fundraising pitch (GM: fabricated; co-founder confirmed) — Foundation Robotics Labs

Markers apply only to the named participant. They do not transfer allegations to connected parties.

Participants 61

Subject

Leadership

Group companies

Projects

Counterparties

Historical

Other

Relationship register 110

chronology

  1. Sankaet Pathak founds the business as Synapse Payments LLC c-id-founding
  2. Synapse Payments, LLC files a Form D reporting $700,000 of equity sold c-id-payments-formd c-id-payments-edgar
  3. The company converts to a corporation as Synapse Financial Technologies, Inc. c-id-founding
  4. Bank Services Agreement with Evolve Bank & Trust c-md-evolve-agreements
  5. $17 million Series A led by Trinity Ventures and Core Innovation Capital c-pp-series-a
  6. $33 million Series B led by Andreessen Horowitz c-pp-series-b
  7. New Hampshire Banking Department consent order on unlicensed money transmission c-rg-nh-2020
  8. Synapse acquires the broker-dealer that becomes Synapse Brokerage LLC c-st-brokerage-history
  9. Loan and Security Agreement with Silicon Valley Bank c-ch-svb-loan
  10. Growth capital loan agreement with TriplePoint lenders c-ch-triplepoint
  11. Master Bank Services Agreement with Evolve c-md-evolve-agreements
  12. Connecticut notice of intent to refuse renewal of Synapse Credit's licence c-rg-ct-2022
  13. Synapse Brokerage launches the cash management program c-br-launch
  14. Evolve sends a notice of material breach; according to Synapse, Mercury gives notice it will not renew c-ev-breach-notice c-mer-departure
  15. Synapse confirms layoffs of 86 people c-mer-layoffs
  16. Mercury files a petition against Synapse in San Francisco Superior Court c-mer-litigation
  17. FDIC consent order against Lineage Bank c-rg-fdic-lineage
  18. Asset purchase agreement with TabaPay c-ch-tabapay-apa
  19. Synapse files for Chapter 11 c-ch-petition
  20. Sale hearing: no settlement with Evolve, and the TabaPay sale is halted c-ch-sale-collapse
  21. According to the CFPB, Evolve and then Lineage freeze end-user activity c-ev-freeze
  22. Court orders a Chapter 11 trustee; Jelena McWilliams is appointed c-ch-trustee-order
  23. Federal Reserve cease-and-desist order against Evolve c-rg-fed-evolve
  24. Senators write to Synapse's former chief executive, investors and partners c-sf-senators
  25. DFPI revokes Synapse Credit's California lending licence c-br-credit-revocation
  26. Yotta sues Evolve in federal court c-lt-yotta-federal
  27. FDIC proposes a recordkeeping rule for custodial accounts c-rg-fdic-rule
  28. DFPI accusation against Synapse Brokerage c-br-dfpi-accusation
  29. Evolve begins paying end users after its reconciliation c-sf-evolve-payouts
  30. DFPI revokes Synapse Brokerage's broker-dealer certificate c-br-dfpi-revocation
  31. FINRA expels Synapse Brokerage c-br-expulsion
  32. CFPB files an adversary complaint against Synapse c-rg-cfpb-action
  33. FINRA files a disciplinary complaint against Stanley and Paverman c-br-finra-complaint
  34. Stipulated final judgment in the CFPB case c-rg-cfpb-judgment
  35. Order approving dismissal of the Chapter 11 case c-ch-dismissal
  36. CFPB Civil Penalty Fund allocation for Synapse victims c-sf-cfpb-redress
  37. FINRA accepts Paverman's offer of settlement c-br-paverman-order
  38. Federal court dismisses Yotta's suit against Evolve c-lt-yotta-federal-course c-lt-yotta-federal
  39. Putative RICO class action filed against Synapse parties c-lt-rico
  40. Yotta sues Evolve in California state court c-lt-yotta-state
  41. DFPI consent order with Yotta c-yt-dfpi-order
  42. FINRA accepts Stanley's offer of settlement c-br-stanley-order
  43. Bankruptcy case closed and trustee discharged c-ch-dismissal

cite this dossier

DossierTwist, “Synapse Financial Technologies: the collapse of a banking-as-a-service provider”, dt.022, 17 October 2026, https://dossiertwist.com/dossiers/synapse-financial-technologies/

Free to read, cite and republish with credit under CC BY 4.0: credit “DossierTwist” and link to the dossier.

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