One of our members wrote in and shared the following:
A judgment was secured in small claims/conciliation court against Evolve Bank and Trust for the full amount of funds frozen in Yotta, totaling $4,655.57. Additionally, the $80 filing fee was awarded, bringing the total judgment to $4,735.57. Following the verdict, a four-month period of settlement negotiations ensued as the bank indicated it might appeal. Legal assistance was utilized during this phase, consisting of initial unofficial guidance followed by a one-hour formal consultation with an attorney.
During negotiations, Evolve requested the vacation or dismissal of the judgment in exchange for a settlement amount lower than the full judgment. They stated that an appeal would complicate further recovery efforts. The bank proposed settlement offers containing various clauses that presented potential contractual difficulties. The bank expressed a preference to resolve the matter outside of civil/district court.
The bank indicated that other claimants had been opting for settlements and noted the public nature of court records.
While their specific court strategy remained unclear, the bank ultimately chose not to proceed with a formal appeal after the default judgment.
The claim was filed on September 24, 2025, with a court date set for January 9, 2026.
Evolve attempted contact a few days prior to the January court date to discuss a settlement, though further communication was not established before the hearing. The bank did not appear on the scheduled court date. During the meeting with the Referee of District Court, the basics of the situation were explained: funds were inaccessible, and Evolve was identified as the responsible entity. The relationship between Yotta (the app), Synapse Brokerage (the BAAS provider), and Evolve (the bank of record) was briefly outlined.
The Referee took the matter under advisement to verify the appropriate defendant. Since Evolve was absent, a ruling in their favor was not possible at that time. Subsequently, a notice was received confirming a judgment by default. Following the judgment, Evolve's counsel initiated contact to discuss a settlement, mentioning they might seek a continuance or file an appeal. Neither action was taken as negotiations continued over several months. Initial settlement offers were minimal. Despite requests for email-only communication, some early interactions occurred by phone before eventually transitioning to writing.
The "Housing and Conciliation Clinic" was used as a resource, providing access to volunteer attorneys for half-hour sessions on three separate occasions.
The next procedural step involved "transcribing" the case to district/civil court to facilitate the collection of the judgment. This action was officially taken on April 1, 2026. Between January and March, negotiations focused on a potential $3,700 settlement. Counsel suggested that further litigation could risk the existing judgment being overturned.
Settlement proposals from the bank included several problematic terms:
In March, the Ramsey County "Minnesota Lawyer and Information Service" was utilized. Following the payment of a $30 application fee, a referral to attorney Sander Goldthwait of Goldthwait Law was provided, which included an initial half-hour consultation at no additional cost. This attorney provided guidance on the details of the ongoing negotiations and established that formal representation was available if requested, though the costs of such services would need to be weighed against the total amount of the claim.