Ziglu Collapse Threatens Savers With £2M Shortfall

The post Ziglu Collapse Threatens Savers With £2M Shortfall appeared on BitcoinEthereumNews.com. Thousands face losses as Ziglu collapses with £2M financial shortfall. Ziglu enters special administration after FCA freezes customer withdrawal requests. High Court finds Ziglu directors misused customer funds for operations. Thousands of people in the UK now face losing their money after the collapse of Ziglu, a British cryptocurrency company. According to The Telegraph, Administrators have found a £2 million ($2.7 million) shortfall in the company’s finances. The revelation has triggered new concerns among savers who trusted their money to Ziglu. Ziglu Collapses into Special Administration After FCA Blocks Withdrawals Ziglu used to be a new hot prospect in the fintech sphere. The firm offered interest rates that are above the market rates and was interested in enabling individuals to enjoy the use of digital money. It was established by Mark Hipperson, who also co-founded Starling Bank. Ziglu has previously been considered to be worth 126 million pounds. However, things got out of control earlier this year. In May, the Financial Conduct Authority (FCA) compelled Ziglu to halt withdrawals. Out of the 20,000 customers of the company, many of them were not able to access their money at once. They had their savings blocked for weeks. Subsequently, Ziglu went into special administration last week. This implies that the company has been seized by external professionals in an attempt to come up with a solution. The special administration was necessitated by the fact that there were serious concerns about how the company was dealing with its money. At a recent High Court hearing, the judge found that Ziglu’s directors misused customer funds. Evidence shows they used the Boost Product, which was meant to earn customers higher returns, to pay for Ziglu’s daily expenses instead. As a result, around 4,000 customers now have about £3.6 million frozen in Boost savings. Unfortunately, most…

Jul 14, 2025 - 03:00
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Ziglu Collapse Threatens Savers With £2M Shortfall

The post Ziglu Collapse Threatens Savers With £2M Shortfall appeared on BitcoinEthereumNews.com.

Thousands face losses as Ziglu collapses with £2M financial shortfall. Ziglu enters special administration after FCA freezes customer withdrawal requests. High Court finds Ziglu directors misused customer funds for operations. Thousands of people in the UK now face losing their money after the collapse of Ziglu, a British cryptocurrency company. According to The Telegraph, Administrators have found a £2 million ($2.7 million) shortfall in the company’s finances. The revelation has triggered new concerns among savers who trusted their money to Ziglu. Ziglu Collapses into Special Administration After FCA Blocks Withdrawals Ziglu used to be a new hot prospect in the fintech sphere. The firm offered interest rates that are above the market rates and was interested in enabling individuals to enjoy the use of digital money. It was established by Mark Hipperson, who also co-founded Starling Bank. Ziglu has previously been considered to be worth 126 million pounds. However, things got out of control earlier this year. In May, the Financial Conduct Authority (FCA) compelled Ziglu to halt withdrawals. Out of the 20,000 customers of the company, many of them were not able to access their money at once. They had their savings blocked for weeks. Subsequently, Ziglu went into special administration last week. This implies that the company has been seized by external professionals in an attempt to come up with a solution. The special administration was necessitated by the fact that there were serious concerns about how the company was dealing with its money. At a recent High Court hearing, the judge found that Ziglu’s directors misused customer funds. Evidence shows they used the Boost Product, which was meant to earn customers higher returns, to pay for Ziglu’s daily expenses instead. As a result, around 4,000 customers now have about £3.6 million frozen in Boost savings. Unfortunately, most…

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