The administrators have discovered a significant shortfall of approximately USD 2.7 million at Ziglu, a UK-based cryptocurrency firm that went into administration earlier this year.

Investor Impact

This issue could result in substantial losses for thousands of investors who had deposited funds through Ziglu’s Boost solution, which offered returns up to 6% during periods of low interest rates. Following the intervention by the Financial Conduct Authority (FCA) in May, all withdrawals were suspended, effectively locking users out of their investments.

Details and Background

Ziglu reportedly had around 20,000 customers who invested in its Boost solution, a popular product until its collapse. The Boost investment was not protected, enabling the company to use customer funds for daily operations and lending activities. At the time of its demise, Ziglu’s assets were valued at about USD 170 million.

RSM, the appointed administrators, are now exploring potential buyers for the company in an attempt to recover these lost funds and minimize investor losses.

Regulatory Challenges

The situation has highlighted the UK’s lagging behind other jurisdictions like Europe with its MiCA framework and the US Senate’s GENIUS Act. The lack of a confirmed rollout date for crypto regulation in the UK continues to draw criticism from industry experts, who argue that this delay is detrimental to the country’s market and economy.

The UK is perceived as falling behind both the EU and the United States due to its failure to implement concrete regulatory measures promptly, according to analyses by organizations such as the Digital Money Institute. This oversight risks undermining the UK’s competitive position in the digital finance sector.