California regulators fine Yotta Technologies $1 million after finding the fintech misled savers, adding to enforcement actions tied to the 2023 collapse of banking-as-a-service provider Synapse. According to the reporting, Yotta marketed its savings accounts as FDIC-insured and presented them as essentially risk-free. Regulators also cited concerns about how customer money was handled in the run-up to Synapse’s failure, including that funds were moved in a way regulators describe as inconsistent with customer expectations. The two outlets also describe Yotta’s product design as combining savings with promotional or “gamification” elements, including sweepstakes-style games and prizes that encouraged customers to open and fund accounts. The enforcement action is part of the broader fallout from Synapse, which left some customers uncertain about the status of their savings and prompted multiple state and regulatory inquiries into partners and related entities. Yotta’s fine reflects findings that its customer-facing claims and practices were deceptive, and it comes as regulators continue to address how banking-as-a-service arrangements operated and what disclosures were made to customers.