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Latest updates on the flow of funds and ACH

Over the last few days, we've been experiencing a critical outage of ACH and money movement for our members. This is mostly due to an unforeseen unwinding of the relationship between our banking technology provider Synapse Financial Technologies, Inc., and their banking partner Evolve Bank and Trust. We're working very hard to do what we can to restore services and give you access to your funds. There are many critical features that are affected by this and they are listed below. 

Features Affected:

• Cashouts
• Refunds
• Payments
• Boosts
• Transfers into your Changed account
• Transfers out of your Changed account

Features not affected:

• Linking and viewing debts
• Viewing debt balances
• Viewing roundup transactions
• Viewing past payments
• Viewing past transfers

During this time, support is also available to help answer questions and provide updates as we get them. Please keep in mind that we don't have all of the details of the fractured relationship between Synapse and Evolve and are only able to provide you with the information that we do have. Below is the information that we're aware of through public channels that we can access.

Timeline of Events 

May 1, 2024

Our banking partner Synapse was in the process of being acquired by a company named Tabapay Inc. During that process, we were informed that the functionality of the Synapse service would continue without interruption and we should expect to continue utilizing the platform in the way we have in the past.

May 9, 2024

Tabapay Inc. decided against acquiring Synapse due to a disagreement between Synapse and Evolve Bank regarding the reconciliation of the ledger that was being used.

May 11, 2024

Evolve Bank notified the Fintech companies working with Synapse that they would have their ACH functionality stopped due to a disagreement between Synapse and Evolve regarding Evolve's access to a dashboard that they used to monitor the flow of funds. We did not receive notification through our business communication channels and discovered this issue through public channels.

May 11, 2024

We reached out to the CEO of Synapse to ask if the ACH functionality was indeed paused and did not receive a clear answer. At this time, all ACH transactions seemed to be working as expected via the dashboard that we had access to. 

May 15, 2024

We sent an email to all Changed members who had balances in their accounts notifying them of the issue with ACH transactions after starting to see ACH transactions being delayed/canceled. All Changed teams were made aware of this issue and resources were shifted to focus on helping restore services and answering questions via our support channels.

May 13, 2024

We've continued to send frequent emails and messages to the Synapse team asking for answers and plans of action to restore ACH and access to member funds. There haven't been any confirmed actions that were taken and the issue remains unresolved. 

May 20, 2024

Synapse and its partner banks were ordered to meet and work toward a resolution to unlock end-users access to funds. This meeting was not public so we do not know what occurred and have not heard from Synapse as to what issues were or were not resolved. 

May 24, 2024

Former FDIC chair Jelena McWilliams was appointed as the Chapter 11 trustee for the operations of Synapse where the Judge in the case instructed to prioritize unlocking access to funds for users. We're actively monitoring the status of the situation and will keep users informed once we have more news. 

May 30, 2024

The Changed team met with the Trustee overseeing SynpaseFi's operations, Jelena McWilliams. Her team will be responsible for and work to reconcile end-user balances, unlock ACH capability, and restore access to end-user funds. They have met with the leadership teams of all of the banks that hold funds on behalf of Changed and SynapseFi. Progress was made and it is expected that there will be more clarity on an exact date when ACH will resume and end users will have access to their funds by the end of next week. Once that date is known, we will work with the banks and relevant parties to restore access to funds. 

June 5, 2024

We've been in continued communication with the Trustee and her team overseeing the operations of Synapse and working toward restoring access to end-user funds. We've been updated that they are preparing a status update that will be published and shared by 6/6/24 end-of-day. This Status Report will contain additional information that we all may find helpful in getting an understanding of progress to date and timeline of resolving the issues of blocked funds. 

June 6, 2024

The Trustee, Jelena McWilliams, provided an update on the situation regarding the frozen funds at Synapse and partner banks. The Trustee has been working tirelessly to investigate the account freeze's causes and restore access to affected users. Progress is being made and several options were discussed in the document and the hearing. The Trustee is coordinating with Synapse's partner banks to reconcile accounts and is considering various options to expedite the release of funds to users. The priority remains to unfreeze accounts and return funds to the rightful owners as swiftly as possible. You can access the report here. We are continuing to communicate with the parties that have control of your funds and will continue to update this page with updates. The Trustee is expected to provide weekly updates every Thursday but we'll update this page with any news in between.

June 14, 2024

The Trustee filed a second status report yesterday, followed by a hearing today where they discussed the report. You can access the status report here. The report details the efforts made so far, highlighting that the main issue preventing access to funds is the reconciliation between all partner banks and Synapse's ledgers. Significant progress on these efforts is expected within the next two weeks. We remain in contact with the Trustee and continue to emphasize the urgency of restoring access to your funds.

June 17, 2024

During a meeting with the trustee, we requested to be directly introduced to the Staff at Evolve Bank who were responsible for the reconciliation efforts. We were introduced to their CTO, Chris Stabb, via email and have made attempts to set up a call, provide our engineering and business resources, and assist in the information sharing for reconciliation efforts. 

June 21, 2024

The Trustee filed a third status report yesterday, followed by a hearing today where they will discuss the report. You can access the status report here. The report details the efforts made so far, including the reconciliation and preparation for the distribution of some funds. While we do not have visibility into which funds are reconciled for which Fintech Partners, we see this as significant progress toward unlocking the funds owed to you. The Trustee has also urged the Federal Reserve, FDIC, and OCC to expedite the unlocking of your funds. We continue to press all the parties we can contact to fight for our members and return the monies you are owed.

June 28, 2024

We've made progress communicating with Evolve Bank regarding the reconciliation of accounts held at Evolve. We're in the process of sharing anonymized data regarding transactions that have been processed by Evolve to aid in the reconciliation efforts. We expect Evolve Bank to compare these transactions against their records to reconcile and confirm the transactions and balances.

July 2, 2024

There is a status hearing set for 7/3/24 where the trustee will share progress made with the partner banks regarding the reconciliation of accounts and unlocking of funds. We will update this page after the status hearing with any relevant information.

July 4, 2024

There were 2 status reports shared yesterday. They can be viewed HERE and HERE. In the reports, a timeline of events is shared with the latest updates being that reconciliation efforts amongst partner banks continue to progress and that a forensic accounting firm has been hired to assist in the reconciliation. We're hopeful that with the help of a forensic accounting firm, significant progress should be made with the reconciliation and release of your funds.

July 8, 2024

We're in the process of scheduling a call with representatives from the U.S. Senate Committee on Banking, Housing, and Urban Affairs to discuss the ongoing issues and work together toward a plan to expedite access to your funds. 

July 10, 2024

We have shared relevant transaction information with Evolve Bank to compare our ledger with theirs. The initial comparison has been completed, but continued analysis is still needed. During this time, we have also been in contact with other partner banks, AMG and Lineage, to discuss providing the same information to their reconciliation teams.

July 12, 2024

We understand that additional data was shared with all partner banks through a relationship with a former Synapse employee contracted by Lineage Bank to assist in the dissection of transaction and balance data. This data is intended to provide all partner banks with greater visibility into the flow of funds. Additionally, CNBC posted an article stating that partner banks have made significant progress in completing a full reconciliation. This is welcome news as we believe this will lead to full reconciliation sooner. We will provide further updates as we receive them. Here is a link to the article

July 15, 2024

Our founder and CEO, Nick Sky, spoke with the Wall Street Journal to bring attention to this critical issue. In the article, he emphasizes the importance of leveraging all available resources to ensure our members receive their funds. You can view the article here. 

July 17, 2024

The Trustee shared an updated status report today. It can be viewed HERE. In the report, the Trustee highlights significant progress in the reconciliation efforts among partner banks, including Evolve Bank. While full reconciliation is ongoing, substantial funds have already been distributed by AMG National Trust. Evolve Bank is verifying balances and preparing for further distributions. The Trustee is facilitating data sharing and collaboration among banks to expedite this process. The Trustee remains committed to restoring full access to your funds as swiftly as possible and we are continuing to reach out to all parties involved to fight for the quickest resolution possible.

July 31, 2024

The Trustee shared an additional status report today. It can be viewed HERE. In the report, the Trustee shares that substantial progress is being made in reconciling funds held with various partner banks, including Evolve Bank. The reconciliation process involves verifying and cross-referencing transaction data to ensure the accurate distribution of funds to affected end users. Evolve Bank has engaged a third-party firm to assist in this process and is working to finalize the reconciliation so that funds can be distributed. Efforts are ongoing, and the goal is to release end user funds as soon as possible. We encourage all Changed member to make sure their address information is up to date in their Changed App in case there is a need to validate this information. 

August 1, 2024

We've been in close contact with leadership at Evolve Bank. In a recent conversation, we were told that Evolve Bank secured access to additional data that will be cross-referenced between Changed member transactions and transaction data that they hold. We expect this process to take 7-10 days after which we expect to have better visibility into which partner bank is holding Changed member funds. 

August 9, 2024

This week we've been working closer with leadership at Evolve. Based on several conversations, we understand that they have written code to do a mass analysis of transaction and balance data against their transaction records to help find actual balances for each end user and at which bank they are located at. Also, we confirmed that AMG National Trust does not hold any funds for Changed members. So we're now confident that our funds are at Evolve or Lineage Bank. Lineage has shared in status reports that their reconciliation should be complete by the end of August. 

August 15, 2024

The Trustee has provided a new status update (which you can read here) on the ongoing efforts by Evolve Bank and Lineage Bank to reconcile and distribute funds. Evolve Bank, with the help of a specialized team of forensic accountants, is making progress in sorting through the complex data needed to figure out your exact balances and ensure funds are distributed accurately. They expect this process to take about eight weeks, after which they’ll be ready to start sending out funds. Lineage Bank is also working on its end and hopes to begin distributing funds by the end of this month. We know this has been a long wait, and we’re here to keep you updated every step of the way, making sure you get your funds back as soon as possible.

August 16, 2024

We've continued to separately work with Evolve Bank on reconciling Changed member balances. They are processing data and shared with us that they will provide us an update on Wednesday 8/21/24. We'll post updates on what is learned after we receive an update. 

August 26, 2024

As of today, we have not heard back from the team at Evolve who agreed to provide us an update on 8/21/24. We're continuing to follow up urging them to provide updates as soon as possible. We're also expecting a new status update from the Trustee this Friday 8/30/24. We will post the report on this status page.

September 3, 2024

A new status update (which you can read here) explains the ongoing work by Evolve Bank and Lineage Bank to reconcile and distribute funds. Evolve Bank, with the help of a specialized forensic accounting team, is making progress in identifying which end users have funds at Evolve and determining the correct amounts. Although the process has been challenging due to discrepancies in the ledgers provided by Synapse, significant progress is being made. Evolve expects to complete the necessary reconciliation and begin distributing funds within the next 6-8 weeks. We know the wait has been long, and we’re committed to keeping you informed every step of the way to ensure you receive your funds as soon as possible.

September 9, 2024

A new status update hearing is scheduled for 9/13/24. We expect to receive a written status report on the evening of 9/12/24 and will post the report on this page. While we have continued to reach out to Evolve's leadership, we have not received a response to the dozens of emails and phone calls made in the last couple of weeks. We will continue to follow up and share updates as we receive them. As stated previously, Evolve expects the reconciliation to be completed 8 weeks after 8/23/24 where they claim to have received all relevant data to complete the reconciliation. The Changed team is actively working to restore services with our new sponsor bank and will share news in the coming weeks. 

September 13, 2024

In the latest Trustee report dated September 12, 2024, Evolve Bank continues to make progress on its reconciliation efforts. According to the report, Evolve has completed the data collection and restoration process and is currently analyzing the data to reconcile individual accounts. This reconciliation will allow Evolve to determine which end users have funds at the Evolve, which users have funds at other partner banks, and distribute the funds accordingly. Based on the timeline shared by the Trustee, Evolve expects to complete the reconciliation and begin distributing funds by October 18, 2024. We will continue to provide updates as more information becomes available.

September 30, 2024

We have a new update from the Trustee's report on Evolve Bank’s progress. Evolve has completed the data collection and restoration phase and is now focused on analyzing this data to reconcile individual accounts. This process will help determine which end users have funds at Evolve and how much is owed to each person. To ensure a smooth and accurate distribution, Evolve is in the process of hiring a third-party administrator to assist with the distribution of funds. Based on the current timeline, Evolve expects to wrap up the reconciliation and begin fund distributions by October 18, 2024. We’ll keep you posted as we receive more information.

October 21, 2024

We have received an important update from Evolve Bank regarding the reconciliation process of your funds. Evolve has shared that they’ve reached a milestone in the reconciliation efforts, allowing them to move forward with the return of funds. They are now preparing to return the funds held at Evolve to impacted end users.

Evolve launched a resource center at reconciliationbyevolve.com, where end users will be able to find more detailed information about the reconciliation process and the anticipated timeline for returning funds. An email will also be sent to all affected end users with further instructions.

End users with a balance at Evolve will need to select a payment method on November 4, 2024, and payments will begin shortly after. More information regarding this request will be shared in the coming days. 

We know this has been a long journey, and we appreciate your patience as this process reaches its final stages. Please keep an eye on your inbox for more details and visit the resource center for additional updates.

November 6, 2024

Evolve Bank has begun sending out emails to end users and has stated that emails will continue to go out until November 14. If you do not receive an email by November 14, end users are asked to visit reconciliationbyevolve.com to submit an appeal. The email from Evolve will come for the email address "evolvebankandtrust@rcnotifications.com" so please check your spam folders. Please do not click any links from email addresses other than "evolvebankandtrust@rcnotifications.com" regarding this matter. 

Once you receive the email, you can enter your information in this portal that is hosted by Evolve. You can also contact Evolve customer support at  877-873-0008. 

November 11, 2024

There have been several members reaching out that Evolve Bank and Trust has yet to communicate with depositors and have also shared inaccurate balances. Evolve’s failures have caused frustration for all of us, and we’re standing with you as we push for answers and accountability.

There will be a court hearing this week to address the issues many depositors are facing with Evolve. This is a valuable opportunity to gain clarity, ask questions, and hear directly from Evolve’s representatives about the challenges they’ve caused.

When: 11/13/24 at 10am Pacific Time.

Zoom Videoconference Link: https://cacb.zoomgov.com/j/1617042313

Meeting Number: 161 704 2313
Password: 495681
Telephone conference lines: 1 (669) 254 5252 or 1 (646) 828 7666

November 14, 2024

Another status conference was held yesterday. The trustee filed their report which you can find here. In the hearing, several users from other fintech companies affected by Evolve's irresponsible actions shared their stories. You can read the notes from the hearing, which were compiled by a user from another fintech affected, here. 

We're continuing to push Evolve to be more transparent about the funds they hold and when they intend to communicate with Changed members. We've emailed Evolve representatives demanding answers and will continue to push on that front. 

In the meantime, we urge you to join this coalition of end users who have been affected by Evolve's shortfalls - https://www.fightforourfunds.org/

We also encourage you to file a complaint with the Federal Reserve using these step-by-step instructions.

November 26, 2024

Hey Squirrel Squad, we have important updates regarding your funds and our ongoing efforts to resolve recent challenges.

Update from Evolve Bank

In a recent call, Evolve Bank confirmed that all funds for Changed members are held in a separate, Changed-specific Demand Deposit Account (DDA). These funds were not part of the broader reconciliation process involving Synapse-related accounts. This information was not previously disclosed and was identified during Evolve’s reconciliation efforts.

Recap of Recent Events

Over the past several months, we have been working diligently to obtain clear information from Evolve Bank about your funds. Initially, Evolve needed time to reconcile funds across all fintech platforms, which delayed updates specific to Changed members.

To address these delays, the Changed Team took legal action, including issuing a demand letter to Evolve Bank. This prompted Evolve to disclose the total funds held for Changed users and arrange a call to provide more transparency.

Progress and Next Steps

During our recent call, Evolve Bank confirmed that all funds for Changed members are fully accounted for. They are collaborating with us to ensure that distributions are processed quickly and smoothly.

Evolve will partner with Rust Consulting to manage the disbursement process, following court procedures and involving all relevant fintech platforms. We understand there are concerns about Rust Consulting’s past communication practices. We are committed to working closely with both Evolve Bank and Rust Consulting to address any issues and ensure you receive your full balance promptly.

December 16, 2024

We’re expecting to hear back from Evolve this week with more details on the distribution of funds for all Changed members. We’ve shared balance data with Evolve, and they have confirmed their intent to return full balances to all members very soon.

In response to our demand letter, Evolve stated:

“Evolve intends to promptly release the funds of Changed users, and is in the process of engaging Rust Consulting to undertake a comprehensive disbursement process through which Changed users will receive an email with payment options to receive their funds. We will follow up with additional details regarding this process as soon as possible.”

In their latest email on 12/12/24, Evolve provided the following update:

“We are still working through an answer regarding lender payments and have engaged a service provider to return funds to Changed end users. We expect to provide an update on the status of the disbursement process next week.”

We know how frustrating this process has been, and we completely understand how difficult it is to not have control over your funds. While our team has worked tirelessly behind the scenes to push this forward, we know it may not feel like enough.

As we’ve said from the start, our top priority remains fighting for you to have access to your funds. The latest updates from Evolve leave us optimistic that this issue will be resolved very soon.

Thank you again for your incredible patience and trust. We’re in this with you every step of the way.

December 30, 2024

We’re continuing to make progress in our discussions with Evolve Bank, and we want to share the latest updates following our recent call with their legal team.

1. Confirming Balances: Evolve Bank is actively working to validate each Changed member's balance. This process involves meticulous verification to ensure accuracy for every member.

2. Addressing Negative Balances: Some Changed members had negative balances in their accounts, which added complexity to the reconciliation process. To help speed things up, Changed has committed to covering these losses in part, ensuring that members with positive balances can receive their funds as quickly as possible.

3. Reprocessing Payments: Payments that were in transit to lenders during the week Evolve froze funds are planned to be reprocessed directly to lenders.

4. Distribution Plans: Once balances are validated down to the penny, Evolve will share details on the distribution methods with all members who had a balance in their Changed account.

5. Timeline Update: While we pushed for a confirmed timeline for when distributions will start, Evolve could not commit to a specific date. However, they assured us that they will provide an update this week on the progress of data validation and the distribution process.

We know how important it is for you to have clarity and access to your funds, and we’re continuing to press Evolve to move forward as quickly as possible. We’ll provide more updates as soon as we receive them.

Thank you for your continued patience and trust as we work through this process together.

Moving Forward

1. Restoring Access to Funds:
   We are laser-focused on restoring access to your funds. While this is largely out of our direct control, we are applying pressure where we can to expedite the process. This remains our top priority. Our new partnerships with nbkc bank and Q2 enhance our ability to manage and safeguard your funds more effectively, reducing the likelihood of future disruptions.
   
   
2. Future of Changed:
   Many of you have asked about the future of Changed post-resolution. We remain committed to our mission of helping you pay off debt faster and save money with Stash My Cash. In the coming weeks, we will be implementing a new provider for ACH and money movement in collaboration with nbkc bank and Q2. find out more about them, here. 
   
   
3. Continued Use of Changed App: 

   During this transition period, you can still use your Changed app to track, manage, and view your debts and payments. The available features are:

   • Linking and viewing debts
   • Viewing debt balances
   • Viewing roundup transactions
   • Viewing past payments
   • Viewing past transfers
     
     

   We are making Changed available at no cost during this period. With the integration of nbkc bank and Q2's technology, you can expect an even more seamless and secure app experience moving forward.

   This page will be updated with the latest information as we learn of it. We have faith that the parties involved will realize that their disagreements are affecting millions of everyday people and access to their funds. We will update you as soon as we can.