Administrators have uncovered a USD 2.7 million shortfall at Ziglu, a UK-based crypto firm that collapsed earlier this year.
As a consequence, thousands of investors will potentially lose their investments. The company collapsed earlier this year and suspended withdrawals in May 2025, being placed into special administration amidst concerns over its financial management, according to a report from The Telegraph.
More about the announcement
Ziglu had around 20,000 customers, promising high interest returns through its Boost solution, which delivered yields up to 6%. Boost became popular in 2021, during a period of low interest rates. However, the product was not protected, which allowed the company to use customer funds for daily operations and lending activities. Following the Financial Conduct Authority’s (FCA) intervention in May, withdrawals were frozen. This left users locked out of their money for weeks.
The report also informs that customers had their Boost investments frozen, totalling approximately USD 3.6 million. With the shortfall, the majority of these funds could be lost unless recovered through a rescue or sale deal. Ziglu was once valued at USD 170 million and collaborated with the US fintech Robinhood in 2022, which fell through due to crypto market fluctuations. Ziglu’s administrators, RSM, will now seek buyers for the company.
Additionally, the UK’s FCA still lacks a confirmed rollout date for its crypto policy, unlike Europe’s MiCA framework and the US Senate’s GENIUS Act. The UK falls short on digital asset regulation, and this is attracting criticism from industry experts, who claim that this procrastination is harming the country’s market and economy due to it being left behind by the EU and the US. The Digital Money Institute also argues that the UK destroyed its early lead in distributed ledger finance by delaying concrete regulatory action.
