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.
Meant to say FDIC in the title (but ISDA is all tied into it)
One Yotta customer, Zach Jacobs, logged onto Evolve’s website on Nov. 4 to find he was getting back just $128.68 of the $94,468.92 he had deposited — and he decided to act.
“We were informed last Monday that Evolve was only going to pay us $500 out of that $280,000,” Morris said during a court hearing last week, her voice wavering. “It’s just devastating.”
My heart go's out for these people I hope this situation gets work out. But something just doesn't seem too add up, Evolve is FDIC since 1925 so there must be something that not being brought to our attention.
She's a school teacher and didn't learn the most basic principle of finance? Then she compounded her error by tossing money into a "non-bank" internet startup? That's strike two for her. And now her money is gone....Strike three. She will be starting over at a decent age, but she will not learn from her three mistakes. On the bright side if she can get her kids a gig at a lemonade stand she might make a few buck for this month's coming rent. No pity from me, sorry. Sometimes it takes a big financial hit to smack someone in the face to pull them back to reality. Oh, she ought to pull up the financial records of the "non-bank" and see which of the officers are still with the company and when did they begin leaving. My guess is one of the first people to leave the company was the one who took all the money with him.
If we don't start hanging people for crimes like this, they will never learn.
This- so much of this. Examples need to be made that will be remembered and talked about generationally or else they'll continue and get worse.
Keep cash on hand in a safe and secure place for exactly this reason. No reason to trust anyone but ourselves nowadays.
Having a safe at home is a good idea, they can store more than just cash.
And silver too.
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.
Meant to say FDIC in the title (but ISDA is all tied into it)
My heart go's out for these people I hope this situation gets work out. But something just doesn't seem too add up, Evolve is FDIC since 1925 so there must be something that not being brought to our attention.
She's a school teacher and didn't learn the most basic principle of finance? Then she compounded her error by tossing money into a "non-bank" internet startup? That's strike two for her. And now her money is gone....Strike three. She will be starting over at a decent age, but she will not learn from her three mistakes. On the bright side if she can get her kids a gig at a lemonade stand she might make a few buck for this month's coming rent. No pity from me, sorry. Sometimes it takes a big financial hit to smack someone in the face to pull them back to reality. Oh, she ought to pull up the financial records of the "non-bank" and see which of the officers are still with the company and when did they begin leaving. My guess is one of the first people to leave the company was the one who took all the money with him.
The redpill here: “When you tell people about this, it’s like, ‘There’s no way this can happen,’” Jacobs said.
FDIC insurance overs just 0.666% of what banks have in assets.
2/3 of 1% is insured.
Who in the world deposits their life savings into a “startup” bank? Something fishy about this story.
There are actually a lot of people who only know Internet "banks"
I’ve been using my excess funds, which is rare, to stock up on gold and silver.
Great idea if you don't have a lot of money! What do you do if you have a lot tied up in CDs?
Jokes on them. I'm too poor to lose anything.