UK encryption company Ziglu reveals a funding gap of $2.7 million and has entered special administration since June.

According to Mars Finance, the UK crypto fintech company Ziglu has disclosed a funding gap of $2.7 million (approximately £2 million) during a special administration process, affecting about 20,000 users whose assets have been frozen. The company suspended withdrawals in May 2024 and officially entered special administration status in June. According to the high court bankruptcy hearing documents disclosed by The Daily Telegraph, funds from the "Boost" high-yield product (promising an annual return of 6%) involving approximately 4,000 users are accused of being misappropriated for the company's daily operations. This product did not establish a fund segregation mechanism, involving approximately $3.6 million. Ziglu was founded by former Starling Bank co-founder Mark Hipperson and was once valued at $170 million. In 2022, acquisition talks with Robinhood were terminated due to market fluctuations. The current administrator, RSM, is seeking a buyer. The Digital Monetary Institute recently pointed out that the UK's crypto regulation lags behind Europe and the US, and the Financial Conduct Authority (FCA) has yet to publish a specific regulatory timeline, while the EU's Crypto Asset Markets Act (MiCA) and the US "GENIUS Act" have been implemented.