Yotta Technologies, a San Francisco-based savings and sweepstakes platform, has been ordered to pay a $1m penalty by California’s Department of Financial Protection and Innovation (DFPI) after regulators found it had systematically misled thousands of customers over the safety of their deposits.
The settlement follows a DFPI investigation that found Yotta had falsely marketed its accounts as FDIC-insured to around 18,000 California customers, before moving those accounts to Synapse Brokerage LLC — a firm that carried no such protection. Synapse subsequently filed for Chapter 11 bankruptcy in April 2024, leaving Yotta customers unable to access their money. When those customers attempted to file insurance claims with the FDIC, they found their accounts were unprotected, contrary to what Yotta had told them.
As part of the consent order, Yotta is also required to notify all California customers who held positive balances in their accounts as of 17 May 2024, providing them with details on how to seek compensation through the Consumer Financial Protection Bureau’s (CFPB) Civil Penalty Fund. A dedicated point of contact for consumer queries must also be established for 120 days from the date the order takes effect. The company is furthermore prohibited from making any further representations that customer deposits are shielded from all risk.
The DFPI’s investigation revealed that since May 2020, Yotta had been telling customers their money was “safe,” “FDIC insured,” and that they “can’t lose” their funds. Despite having serious reservations about Synapse, Yotta transferred customer accounts to the firm in October 2023. Synapse provided technology connecting non-bank FinTech platforms to partner banks, but did not offer FDIC protection. The bankruptcy filing came just months later.
Yotta is a consumer-facing platform that combined sweepstakes-style prize mechanics with savings accounts, rewarding customers who deposited funds with the chance to win prizes. The DFPI’s action is part of a broader effort to secure financial relief for those affected by the Synapse collapse.
The DFPI was notably the first regulatory body in the United States to take formal action in the wake of the Synapse bankruptcy, revoking Synapse Credit LLC’s finance lending licence in July 2024 and subsequently stripping Synapse Brokerage LLC of its broker-dealer certificate. In 2025, the CFPB established a relief fund to compensate consumers harmed by the Synapse bankruptcy. The $1m penalty is also intended to serve as a warning to other firms considering similar deceptive conduct in violation of the California Consumer Financial Protection Law.
DFPI commissioner KC Mohseni said, “Yotta blatantly deceived thousands of California customers regarding the risk to their accounts. It enticed customers to use its financial products and services under false pretenses, ultimately resulting in millions of dollars in lost funds. California will not tolerate these kinds of fraudulent practices and will hold those who flout our laws accountable.”
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