UK crypto company Ziglu reveals a $2.7 million funding gap and has entered special administration in June

ChainCatcher news, according to Cointelegraph, UK crypto fintech company Ziglu has disclosed a funding gap of $2.7 million (approximately £2 million) in a special administration process, with around 20,000 users' assets frozen. The company suspended withdrawals in May 2024 and officially entered special administration in June.

According to high court bankruptcy hearing documents disclosed by The Daily Telegraph, funds from the "Boost" high-yield product (promising an annual return of 6%) involving about 4,000 users are accused of being misappropriated for the company's daily operations. This product did not establish a fund segregation mechanism, involving an amount of approximately $3.6 million.

Ziglu was founded by former Starling Bank co-founder Mark Hipperson, and was once valued at $170 million. Acquisition talks with Robinhood were terminated in 2022 due to market volatility. The current administrator, RSM, is seeking a buyer.

The Digital Monetary Institute recently pointed out that the UK's crypto regulation is lagging behind Europe and the US, with the Financial Conduct Authority (FCA) yet to publish a specific regulatory timetable, while the EU's Markets in Crypto-Assets Regulation (MiCA) and the US "GENIUS Act" have already been implemented.