U.K.
#Crypto Firm Ziglu Faces $2.7M Deficit After Collapse
British crypto fintech Ziglu has entered special administration with a $2.7 million shortfall affecting 20,000 customers.
The company froze withdrawals in May after FCA intervention, leaving savers locked out of their high-yield "Boost" accounts.
Around 4,000 customers had $3.6 million frozen in Boost investments offering up to 6% returns, with most funds potentially lost.
Directors are accused of misusing customer funds to cover cash flow issues before applying for administration in June.
Founded by ex-Starling Bank co-founder Mark Hipperson, Ziglu was once valued at $170 million with a failed Robinhood acquisition deal.
The collapse highlights the U.K.'s regulatory delays compared to the EU's MiCA framework and the U.S. Senate's GENIUS Act for
#crypto oversight.
