In a recent development, administrators have identified a significant financial shortfall of $2.7 million at Ziglu, a UK-based crypto firm that ceased operations earlier this year.
The collapse of the company and subsequent suspension of withdrawals in May 2025 led to its placement under special administration following concerns over mismanagement. This situation has put thousands of investors at risk of losing their investments, according to a report from The Telegraph.
Key Details
Ziglu had approximately 20,000 customers who relied on its Boost solution, which offered high interest rates up to 6%. Despite the appeal of these yields during a period of low-interest rates in 2021, customers’ funds were not protected. This allowed Ziglu to utilize customer capital for daily operations and lending activities. Following an intervention by the Financial Conduct Authority (FCA) in May, withdrawals were halted, leaving users without access to their money for several weeks.
The Boost investments held by customers totalled about $3.6 million, which are now frozen. Unless these funds can be recovered through a successful buyer or sale deal, the majority of them could potentially be lost. Ziglu was previously valued at $170 million and had partnered with US fintech Robinhood in 2022, but this collaboration failed due to fluctuations in the crypto market.
Regulatory Challenges
The lack of a confirmed rollout date for the UK’s crypto policy continues to be a concern. Unlike other regions such as Europe’s MiCA framework and the US Senate’s GENIUS Act, the UK is lagging in digital asset regulation. This situation has drawn criticism from industry experts, who argue that delayed regulatory action is harming the country’s market and economy by leaving it behind on a global scale.
The Digital Money Institute further asserts that the UK squandered its initial advantage in distributed ledger finance through procrastination. The current absence of clear and concrete regulations has put Ziglu and other firms at risk, as seen from this recent shortfall.