Synapse, a financial technology company that provides banking services to other fintech firms, is facing liquidation after initially raising over $50 million in funding. The company, which initially received a $33 million Series B round led by Angela Strange of Andreessen Horowitz in 2019, fell into difficulties in 2023 due to layoffs and filed for bankruptcy protection in April of this year.

Synapse's bankruptcy has significant implications for the fintech industry, as the company operates a service that allows other fintech firms to embed banking services into their products. The company's collapse is expected to affect as many as 100 fintech companies and 10 million end customers, according to industry observer and author of 'Fintech Business Weekly', Jason Mikula.

The funds of crypto application Juno were also affected by Synapse's bankruptcy, with a teacher from Maryland named Chris Buckler stating in a document dated May 21 that he was unable to use his funds held in Juno due to issues related to Synapse's bankruptcy. The collapse of Synapse is a significant setback for the fintech industry, highlighting the risks and challenges faced by fintech companies in the rapidly evolving financial technology landscape.

In conclusion, Synapse's liquidation is a significant development in the fintech industry, highlighting the risks and challenges faced by fintech companies in the rapidly evolving financial technology landscape. The company's collapse is expected to affect a large number of fintech companies and end customers, and its impact will be felt across the industry.