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Fintech disputes force TabaPay to drop the purchase of bankrupt Synapse


Disputes force TabaPay drop purchase Synapse

TabaPay, the instant payments startup, has confirmed that it will no longer acquire the assets of struggling banking-as-a-service company Synapse.

According to Synapse, Evolve Bank & Trust, a banking partner, is the issue. Furthermore, Evolve asserts that it is not at fault or involved. Mercury, a different character in the story, claims that Synapse's accusations are baseless.

On Thursday, Synapse's lawyer stated in bankruptcy court that the agreement will not continue, as reported by Jason Mikula of Fintech Business Weekly on LinkedIn. An official from TabaPay verified to TechCrunch on Thursday afternoon that the business had "pulled out." This morning, TabaPay sent a notice terminating the purchase agreement due to noncompliance with the closing terms of the deal.

Sankaet Pathak, co-founder and CEO of Synapse, thinks TabaPay can still be persuaded to stick with the agreement, nevertheless. TabaPay is still interested in completing the deal, but they can't close it because Evolve hasn't fulfilled their closing requirement.

Pathak stated that Evolve Bank & Trust needs to pay its FBO accounts in full, which it has not done yet. A designated account for a beneficiary or third party is known as an FBO account.

An Evolve representative told reporters that the company was not part of the Tabapay transaction and had no remaining requirements to meet. They did, however, have a financial need in their settlement deal with Synapse. Evolve met that requirement.

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