Federal Reserve issues enforcement action against Evolve Bank
Evolve Bank and Trust has agreed to a cease-and-desist order with the Federal Reserve after it “found that Evolve engaged in unsafe and unsound banking practices” surrounding some of its fintech partnerships. Furthermore, the Federal Reserve found that Evolve did not have “controls sufficient to comply with anti-money laundering laws.” Evolve has been thr US t into the Banking ind US try spotlight recently as many fintech US ers have had their accounts frozen due to the failure of Synapse Financial Technologies, the middleman that connected Evolve to these vario US fintechs. The problem has grown in complexity as the ledgers of Synapse and Evolve, and even some of the fintechs like Yotta, disagree on how much money is meant to be in certain accounts . Evolve has been an important bank for the crypto ecosystem, serving as the card issuer for BlockFi’s credit cards and providing checking accounts and debit cards for FTX customers. The recent examine...