Paying _who_ out?

Yotta is who the people gave their money to. Yotta then used Synapse (which went bankrupt) to actually deposit the money into not-per-user accounts at 4 different banks. As-in, if you had an account with Yotta your money would be co-mingled with thousands+ other individuals into a singular Evolve account.

Evolve has no proof that your money is within the account Synapse held with them. As-in your money could be at one of the 3 other banks.

Yotta is the one being irresponsible for not keeping track of how Synapse split the funds. (Although arguable Evolve shouldn't keep co-mingled funds since that sounds like a KYC violation).

This is why not only does your broker not hold your stocks for you, they also tell the holding company who owns them.

Yotta is speed running the financial system's previous failures.

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throwup238 8 months ago | parent | next [-]

> Yotta is speed running the financial system's previous failures.

The theme of the 21st century so far seems to have been “speed running the 20th.”

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lxgr 8 months ago | parent | prev [-]

> This is why not only does your broker not hold your stocks for you, they also tell the holding company who owns them.

Are you sure about that?

I believe modern common practice in the US and many other countries is for the stock to be held by the depository in the brokerage name (which is referred to as "street name" ownership), and only the brokerage to have customer-level records.

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lesuorac 8 months ago | parent [-]

https://www.investopedia.com/ask/answers/185.asp

> That doesn't mean the investor doesn't own the securities it bought. It's just a formality. As part of the process, the broker will assign all ownership rights to the investor by registering the client as the beneficial owner.

There was a quip about this in one of the moneystuff or bitsaboutmoney but not too sure which one.

	▲	lxgr 8 months ago \| parent [-]
		You definitely do own them in a legal sense, but in a bookkeeping sense, there is a very real difference between the depository and your broker maintaining ownership records. Legal ownership is what makes your claims worth anything in a court of law, and protects them against those of other creditors, but without proper bookkeeping, you have no evidence a court could even consider.