It said in the article that Yotta isn’t a bank, it was an internet savings startup. Why would anyone put their money into something like that? Sounds like a typical phone or web scam. Blaming the banks for Yotta stealing the money is disingenuous. Having an actual account in the bank, or credit union, would have been a better way to go.
Doesn’t that just insure bank deposits? I think the issue was the company didn’t deposit the money like they said they would. Those people put their money into an online savings startup, not the actual bank. The startup was supposed to secure the money in the bank and didn’t.
It said in the article that Yotta isn’t a bank, it was an internet savings startup. Why would anyone put their money into something like that? Sounds like a typical phone or web scam. Blaming the banks for Yotta stealing the money is disingenuous. Having an actual account in the bank, or credit union, would have been a better way to go.
The key issue is it was FDIC insured. And FDIC isn't covering the costs they legally have to.
Doesn’t that just insure bank deposits? I think the issue was the company didn’t deposit the money like they said they would. Those people put their money into an online savings startup, not the actual bank. The startup was supposed to secure the money in the bank and didn’t.
Sounds like SBF part deux.