Deep Tide TechFlow News, on July 13, according to Cointelegraph, the UK cryptocurrency fintech company Ziglu, which collapsed earlier this year, has a funding gap of £2 million ($2.7 million), leaving thousands of depositors facing the grim prospect of losing their investments. It is reported that due to growing concerns about the company's financial management, it was placed under special administration last week, having previously suspended withdrawal services in May.
Ziglu attracted around 20,000 customers with promises of high-interest returns, particularly its 'Boost' product, which offered yields as high as 6%. Boost was launched during the low interest rate period in 2021 and became popular due to its higher return rates. However, the product lacked protection or segregation measures, allowing the company to use customer funds for daily operations and lending activities. After the UK's Financial Conduct Authority (FCA) intervened in May, withdrawal operations were frozen, and depositors' funds were locked for several weeks.