Crypto debit card failures have exposed how little control some wallet and fintech brands hold over their payment services, with a $1.1 million Rain contract exploit illustrating the risks of shared infrastructure.
Summary
- Shared banks, processors, and middleware can leave separate card brands exposed to the same failure.
- Rain’s August exploit targeted funded card balances, leaving customers’ personal wallets and private keys untouched.
- MNEE App CEO Ron Tarter recommends direct bank relationships and independently accessible customer records.
- US deposit insurance covers eligible bank deposits against bank failure, not a fintech provider’s collapse.
Ron…
