Thousands of investors are at risk of losing their money after a £2 million ($2.7 million) deficit was discovered at Ziglu, a UK cryptocurrency fintech that collapsed earlier this year. The company, which halted withdrawals in May, entered special administration last week due to concerns over its financial practices. Ziglu had attracted around 20,000 customers with its high-interest offerings, particularly the 'Boost' product, which promised yields of up to 6%. However, this product was not safeguarded, allowing the company to use customer funds for operational expenses. Following intervention from the Financial Conduct Authority (FCA), withdrawals were frozen, leaving customers unable to access their funds. In a recent High Court hearing, directors faced accusations of mismanaging funds, with evidence indicating that money from Boost investors was misallocated to address cash flow issues. Approximately 4,000 customers have had their investments frozen, totaling around $3.6 million, with the majority of these funds potentially lost unless a rescue deal is reached. Read more AI-generated news on: https://app.chaingpt.org/news