Ziglu Faces $2.7M Shortfall as Crypto Fintech Enters Special Administration
Ziglu, a British cryptocurrency fintech, faces a £2 million ($2.7 million) shortfall, jeopardizing investments for thousands of savers. The company suspended withdrawals in May and entered special administration last week due to financial mismanagement concerns. Ziglu attracted around 20,000 customers with its “Boost” product, offering yields up to 6%, but customer funds were not protected, allowing misuse for operational costs. At a High Court hearing, directors were accused of mismanaging funds, diverting money from Boost investors to cover cash flow issues. Approximately 4,000 customers have frozen investments totaling $3.6 million, with most funds at risk of loss. Ziglu's administrators will seek buyers for the company. The UK's unclear digital asset regulation is criticized for hindering progress compared to the EU and US, with no confirmed launch date for the FCA's crypto regime.
