CoinVoice has recently learned that, according to Cointelegraph, the UK crypto fintech company Ziglu disclosed a funding gap of $2.7 million (approximately £2 million) during the special administration process, with around 20,000 users' assets frozen. The company suspended withdrawals in May 2024 and officially entered special administration in June.
According to documents from the High Court bankruptcy hearing disclosed by The Daily Telegraph, approximately 4,000 users participated in the 'Boost' high-yield product (promising an annual return of 6%), with funds alleged to have been misappropriated for the company's daily operations. This product did not establish a fund segregation mechanism, involving an amount of approximately $3.6 million.
Ziglu was founded by former Starling Bank co-founder Mark Hipperson, and was once valued at $170 million. Acquisition talks with Robinhood were terminated in 2022 due to market volatility. The current administrator, RSM, is seeking a buyer.
The Digital Monetary Institute recently pointed out that the UK's crypto regulation is lagging behind Europe and the US. The Financial Conduct Authority (FCA) has not yet published a specific timeline for regulatory frameworks, while the EU's Markets in Crypto-Assets Regulation (MiCA) and the US 'GENIUS Act' have been implemented.