Dear Klutch user,

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Thank you for your patience as we work to restore service to the Klutch platform. 

I wanted to give you some background and context for what is happening. 

When I started Klutch, 4 years ago it was just a dream of a new way to provide financial services. 

Building a credit card is very complex for a company of our size. One of the most important parts of the process is partnering with a bank and card processor.

We ended up partnering with Synapse who is partnered with Evolve as the issuing bank. At the time, Synapse was a very respected and growing company with large customers and well respected investors.

Unfortunately, Synapse lost their main customer, Mercury, and during that process got into a dispute with our shared partner Evolve. There's a litigation going on among them about funds not reconciled between the two services.

In the beginning of this month, Synapse declared bankruptcy, and they were supposed to sell their assets to a new buyer, Tabapay, who backed off from the deal at the 11th hour after Evolve failed to perform their part in the arrangement.

You can read more about this here or on this other article here

We got caught in the middle of this dispute and at this moment, Evolve has cut all of Synapse's customers, including Klutch.

As a result, we are not able to process card transactions at this moment. 

We don't believe this is ethical nor legal on their part, and we have legal representation in the bankruptcy court and are working on this case.

We are also in conversations with other providers to migrate Klutch, but we are not sure how long that will take.

This is a fluid situation, and we will spare no efforts to resume our service. We are sufficiently funded and well placed to make it happen.

Thanks for being a Klutch Customer,

We really appreciate your business and your belief in our mission,

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Renato Steinberg

Founder and CEO

Klutch

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