>In June, the FDIC made it clear that its insurance fund doesn’t cover the failure of nonbanks like Synapse, and that in the event of such a firm’s failure, recovering funds through the courts wasn’t guaranteed.

Apparently not FDIC insured, despite the advertising. How is a consumer supposed to know whether their money is with a true “bank” or with a “fintech”?

Edit Re-read your comment again and we are saying the same things

It's usually in the fine print of their website, something like "insolvency.io is not a bank, your funds are handled by <some bank you've never heard of>".