Ziglu Faces $2.7M Shortfall as Crypto Fintech Enters Special Administration

Thousands of savings are facing grim prospects for losing their investment after the administrators revealed a shortage of £ 2 million ($ 2.7 million) in Zigl, the British cryptocurrency FINTE, which collapsed at the beginning of this year.

The company that suspended the selections in May was included in a special administration in the middle of the growing concerns of its financial management last week, according to to the Sunday report from the telegraph.

Ziglu attracted about 20,000 customers with a high -interest income, especially through its “Boost” product that offers revenues of up to 6%. Boost started in 2021 during a period of low interest rates and has become popular thanks to its higher revenues.

However, the product was not protected or bounded, which made the company to use customer means for everyday operation and lending. After the Financial Behavior Office (FCA) intervention In May, the selections were frozen and the savings remained locked from their money for weeks.

Related: UK sentences 2 men in prison more than 2 million crypt fraud

Directors accused Zigla of abuse of funds

At the recent hearing of the High Court, the directors were accused of incorrect funds of funds, indicating that the money from Boost Savers was diverted to cover general questions of cash flows before the company requested in June for special administration for the telegraph.

The report said that approximately 4,000 customers had their investments frozen, a total of approximately $ 3.6 million. With a shortage of $ 2.7 million, most of these funds could be lost if they did not get through a rescue or sales agreement.

Ziglu, founded by former co -founder of Starling Bank Mark Hipperson, described her mission as “authorization of everyone to benefit from the new world of digital money, easily, safely and affordable”.

The company was once awarded at $ 170 million and attracted an agreement with us FINTECH GIANT ROBINHOOD In 2022, which later fell in the middle of the market crypto. Ziglu, RSM administrators, will now be looking for buyers for the company.

Related: Smarter Web Company in the UK adds $ 24.7 million in bitcoins, now holds 773 BTC

The United Kingdom lags behind the regulation of the crypto

The unclear attitude of the United Kingdom to the regulation of digital assets draws criticism from experts on industry who Blame the “policy of policy” For a country that lags behind the European Union and the US.

Last month, John Orchard and Lewis McLellan of The Digital Monetary Institute claimed that the United Kingdom wasted its early leadership in distributed financing the book by delaying a specific regulatory measure.