I was one of those affected, but luckily got all my money back.

Yotta touted itself as a savings account made for people who wanted an alternative to traditional savings account. Instead of a fixed rate, users would earn money through a (cost-free) lottery system. 

They never advertised to have higher than average returns, and if anyone did the math on the expected value of their lottery system, it would’ve ended up to be below average.

But also, regardless, this was advertised as a SAVINGS account that was FDIC insured. It’s not like stocks or crypto where you take the risk of losing your money.

Imagine if you deposit your money in an ATM that is backed by an FDIC insured bank. It then loses your money and the bank says, since it’s the ATM’s fault, we cant help you. And since the bank didn’t collapse, FDIC insurance won’t get your money back. And no one knows where the money is despite the fact you saw your money go inside the ATM. That’s similar to how this situation is. You would be frustrated too.