Ziglu’s Crypto Fiasco: $2.7M Shortfall and a Heap of Troubles 🤦‍♂️

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Well, here we are, folks, another fine tale of financial folly. Thousands of savers are now staring down the barrel of a 2 million pounds ($2.7 million) deficit at Ziglu, a British cryptocurrency fintech that went belly-up earlier this year. 🤑

The company, which had the audacity to suspend withdrawals back in May, was placed into special administration last week, much to the surprise of no one who’s been paying attention. According to a Sunday report from The Telegraph, the writing was on the wall, and it was written in red ink.

Ziglu, with its grand promises of high-interest returns, managed to attract around 20,000 customers, particularly through its “Boost” product, which offered yields up to 6%. Launched in 2021, when interest rates were as exciting as a wet sock, Boost became the shiny penny in a dull piggy bank. 🐷

However, it turns out that the Boost product was about as secure as a screen door on a submarine. The company used customer funds for day-to-day operations and lending activities, which is about as wise as using a leaky bucket to bail out a sinking ship. When the Financial Conduct Authority (FCA) stepped in, withdrawals were frozen, leaving savers locked out of their money for what felt like an eternity. 🕒

Ziglu Directors Accused of Misusing Customer Funds

At a recent High Court insolvency hearing, the directors were accused of mismanaging funds, with evidence suggesting that money from Boost savers was diverted to cover general cash flow issues. It’s like they were using the company’s piggy bank to pay for their own pig roast. 🥩

The report said that around 4,000 customers had their Boost investments frozen, totaling approximately $3.6 million. With the $2.7 million shortfall, the majority of these funds could be lost unless a rescue or sale deal is struck. It’s a bit like trying to catch a unicorn with a fishing net. 🦄

Ziglu, founded by former Starling Bank co-founder Mark Hipperson, once described its mission as “empowering everyone to benefit from the new world of digital money, easily, safely, and affordably.” Safe? Affordably? I guess it depends on your definition of those words. 🤔

The company was once valued at $170 million and even attracted a deal with US fintech giant Robinhood in 2022, which, like a mirage in the desert, disappeared amid crypto market turmoil. Ziglu’s administrators, RSM, will now seek buyers for the company, a task that’s about as easy as finding a needle in a haystack. 🧵

UK Falls Behind on Crypto Regulation

The UK’s unclear stance on digital asset regulation is drawing criticism from industry experts, who blame “policy procrastination” for the country falling behind the European Union and the US. It’s like the UK is still trying to decide whether to wear a coat while the rest of the world is already halfway to the beach. 🏖️

Last month, John Orchard and Lewis McLellan of the Digital Monetary Institute argued that the UK has squandered its early lead in distributed ledger finance by delaying concrete regulatory action. Unlike the EU’s Markets in Crypto-Assets (MiCA) framework and the US Senate’s recent passage of the GENIUS Act, which provide clear guidelines for crypto and stablecoins, the UK’s FCA still lacks a confirmed launch date for its crypto regime. It’s a bit like planning a picnic without checking the weather forecast. ☔

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2025-07-13 13:36