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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The post Collapsed Crypto Firm Ziglu Faces Major Financial Shortfall appeared first on Coin Engineer.

WLFI’s current portfolio includes Bitcoin (BTC), Ethereum (ETH), as well as several altcoins such as Tron (TRX), Ondo Finance (ONDO), Avalanche (AVAX) and now Sei (SEI).

$347M Invested, Yet No Profits Recorded

According to blockchain analytics platform Lookonchain, WLFI has spent a total of $346.8 million across 11 tokens, with no profits reported on any of them. Its Ethereum holdings alone are down over $114 million, and the overall portfolio has an unrealized loss of $145.8 million.

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USD1 Logo Goes Live, Lawmakers Voice Alarm!

In a surprising move, WLFI’s stablecoin USD1 logo has been spotted on Coinbase, Binance, and CoinMarketCap, though no official announcement has been made. This has sparked political backlash.

At an April 2 U.S. House Financial Services Committee hearing, Representative Maxine Waters accused former President Trump of planning to replace the U.S. dollar with his own stablecoin. Committee Chair French Hill echoed the concern, warning of potential conflicts of interest.

The Trump family’s crypto involvement is not new. On February 3, Eric Trump urged followers to buy ETH, calling it “a great time.” Since then, Ethereum’s price has plunged 55%, dropping from $2,879 to around $1,611.

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The post Trump-Backed WLFI Buys $775K in SEI! appeared first on Coin Engineer.