UK crypto firm Ziglu reveals $2.7 million funding shortfall, entered special administration in June
According to a report by Cointelegraph cited by Jinse Finance, the UK-based cryptocurrency fintech company Ziglu, which collapsed earlier this year, is facing a £2 million ($2.7 million) funding shortfall, leaving thousands of depositors at serious risk of losing their investments. The company was placed under special administration last week amid growing concerns over its financial management, after having already suspended withdrawal services in May. Ziglu attracted around 20,000 customers with promises of high-yield returns, particularly through its “Boost” product, which offered yields as high as 6%. Launched during the low-interest-rate environment of 2021, Boost became popular due to its attractive returns. However, the product lacked safeguards or segregation measures, allowing the company to use customer funds for daily operations and lending activities. After the UK Financial Conduct Authority (FCA) intervened in May, withdrawals were frozen, leaving depositors’ funds inaccessible for several weeks.
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