UK crypto platform Ziglu faces financial collapse, enters special administration

PANews reported on July 10 that according to Crowdfundinsider, the British crypto banking platform Ziglu has entered a special management procedure, indicating that the star enterprise founded by former Starling Bank co-founder Mark Hipperson is facing serious financial difficulties. Ziglu's directors applied to the court for special management, admitting that the company has gone bankrupt. David Shambrook and Damian Webb of RSM Restructuring Advisory LLP were appointed as special administrators on July 7 to oversee the bankruptcy process and manage the distribution of remaining assets.

The financial report shows that Ziglu has lost more than 20 million pounds for two consecutive years, and lost more than 4 million pounds due to the bankruptcy of Celsius Network. On June 13 this year, the FCA ordered it to stop issuing electronic money and crypto custody business. The special administrator disclosed that as of the end of 2023, the company held 7.25 million pounds of customer funds, of which 6.7 million were crypto assets. Currently, the user withdrawal channel has been frozen, and the FCA warned that its crypto business is not covered by deposit insurance.

Earlier in June, it was reported that Ziglu's Boost account service was frozen and customers were unable to withdraw funds .