TechFlow, July 13 — According to Cointelegraph, the UK-based cryptocurrency fintech firm Ziglu, which collapsed earlier this year, has a funding shortfall of £2 million ($2.7 million), leaving thousands of depositors facing the grim prospect of losing their investments. The company was placed into special administration last week amid growing concerns over its financial management, after suspending withdrawal services in May.
Ziglu attracted around 20,000 customers with promises of high-interest returns, particularly through its "Boost" product, which offered yields as high as 6%. Launched in 2021 during a period of low interest rates, Boost became popular due to its attractive returns. However, the product lacked protection or segregation measures, enabling the firm to use customer funds for day-to-day operations and lending activities. After intervention by the UK Financial Conduct Authority (FCA) in May, withdrawals were frozen, leaving depositors' funds inaccessible for weeks.
