Yigit Taha OZTURK 
Another blow to the UK’s crypto sector: collapsed fintech firm Ziglu is now at the center of a major financial shortfall, leaving thousands of users exposed to serious losses.
From Promises of High Returns to Frozen Funds
Launched in 2021, Ziglu attracted nearly 20,000 customers with its “Boost” product, offering yields up to 6%—a tempting offer at a time of historically low interest rates. However, these products lacked consumer protection and were not segregated, enabling the company to use customer funds for operational needs and lending.
In May, the UK’s Financial Conduct Authority intervened, leading to the suspension of all withdrawals. The company then entered special administration last week, after administrators uncovered a $2.7 million deficit.
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Court documents revealed that Ziglu directors may have redirected Boost funds to cover cash flow problems prior to applying for administration in June. An estimated $3.6 million in customer investments remains frozen, with around 4,000 individuals affected.
Ziglu’s Future Hangs on Sale or Rescue
Once valued at $170 million, Ziglu had secured a deal with U.S. fintech firm Robinhood in 2022. However, the agreement collapsed amid broader crypto market instability.
Now under the control of administrators from RSM, the company’s remaining assets may be sold to recover lost funds. Without a successful deal, most savers stand to lose a significant portion of their investments.
UK Lags in Crypto Regulation
Industry observers argue that the UK is falling behind global competitors in digital asset regulation. Unlike the EU’s MiCA initiative or the U.S. Senate’s recently passed GENIUS Act, the UK has yet to establish a firm regulatory framework or a launch date for its crypto regime.
Policy delays and uncertainty have prompted criticism from experts who say the country has squandered its early lead in blockchain innovation.
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