Frozen Funds and Missing Millions

British cryptocurrency platform Ziglu has entered special administration with a £2 million ($2.7 million) deficit, leaving approximately 20,000 customers unable to access their savings. The Financial Conduct Authority (FCA) intervened in May 2025 after discovering irregularities in the firm's financial management, freezing withdrawals from its high-yield "Boost" product that promised returns up to 6%.

How Customer Funds Disappeared

Court documents reveal Ziglu allegedly used Boost investor money——totaling $3.6 million across 4,000 accounts——to cover operational expenses. 【RSM administrators】 confirmed only $900,000 remains recoverable, meaning 75% of investments could vanish unless a buyer rescues the company. The fintech, founded by Starling Bank co-creator Mark Hipperson, previously attracted Robinhood's acquisition interest during its $170 million valuation peak in 2022.

Regulatory Gaps Exposed

——This collapse highlights the UK's lagging crypto oversight——as the FCA still lacks implementation dates for comprehensive rules. Unlike the EU's MiCA framework operational since 2024 or the US GENIUS Act passed last month, Britain's "policy procrastination" (as termed by Digital Monetary Institute analysts) leaves investors vulnerable. Notably, Ziglu's Boost accounts weren't ring-fenced like traditional savings products, allowing unrestricted fund usage.

What Happens Next

Administrators are urgently seeking buyers while affected customers join a growing queue of unsecured creditors. The case mirrors 2023's Celsius Network collapse, where users recovered just 30-40% of assets. With UK crypto regulation still in draft stages, industry watchers warn more Ziglu-like failures may emerge before proper safeguards take effect.

——"When platforms blur lines between banking and crypto, consumers bear the risk,"—— cautioned a London fintech attorney speaking anonymously. As of press time, Ziglu's website remains operational but displays withdrawal suspension notices, while its Twitter feed last updated in June 2025 announcing the administration process.