Ziglu faces $2.7 million shortage, cryptofintech enters special management


Thousands of savers face a grim prospect of losing their investment after managers discovered a 2 million pound ($2.7 million) shortage of Ziglu, a UK cryptocurrency fintech that collapsed earlier this year.

The company suspended its evacuation in May and was placed under special administration last week according to to the Telegraph’s Sunday report.

Ziglu attracts about 20,000 customers through its commitment to high interest returns, especially through its “Boost” product, which yields up to 6%. Boost was launched in 2021 and Boost has become popular due to its higher returns.

However, the product is not protected or responsive, allowing the company to use customer funds for daily operations and loan activities. Follow the Financial Conduct Authority (FCA) put one’s oar in In May, the evacuation was frozen, locking the reserves out of their money for weeks.

source: Ziglu

Related: British Sentence 2 Man Sentence Sentenced to $2 Million Cold Crypto Scam

Ziglu Director accused of misusing client funds

At a recent High Court bankruptcy hearing, the director was charged with mismanagement funds, and there was evidence that Boost Savers’ funds were transferred to cover general cash flow issues before the company applied for special management in June, according to the telegram.

The report said that enhanced investments from approximately 4,000 clients were frozen, totaling about $3.6 million. Due to the $2.7 million shortage, most of these funds may be lost unless recovered through a rescue or sales agreement.

Ziglu was founded by former Starling Bank co-founder Mark Hipperson, who described its mission as “benefiting a new world of digital currency that can be easily, safely, securely, and affordable for everyone.”

The company was once worth $170 million. Attracted deals with our fintech giant Robini In 2022, it later fell amid turmoil in the cryptocurrency market. Ziglu’s administrator RSM will now look for buyers for the company.

Related: UK smart network company adds $24.7 million in Bitcoin and now holds 773 BTC

UK lags behind crypto regulations

The UK’s unclear position on digital asset regulations has attracted criticism from industry experts Blame “policy delay” For countries that lag behind the EU and the United States.

Last month, John Orchard and Lewis McLellan of the Institute for Digital Currency Research believed that the UK was wasting early leads in distributed ledger finance by delaying specific regulatory actions.