The fintech, one of two companies behind the Everyday Payments tip-pooling platform that saw millions go missing from user accounts last month, said it has been “operating in a financially strained position since inception” and used client funds to stay afloat. XTM submitted the filing as part of an application for creditor protection. The Globe and Mail first reported the news. (The Logic, The Globe and Mail)

Talking point: Restaurants across Canada are out millions of dollars because of the scandal, which is testing the Bank of Canada’s new oversight powers of payments companies. The central bank ordered XTM to stop operating in February, letting it start up again later that month after it applied for creditor protection. XTM said in the filing that it’s looking for a buyer or investor to secure funds to repay its creditors, shareholders and the restaurants whose tips went missing.