According to Crowdfundinsider's report on the 9th, the UK digital bank and crypto platform Ziglu announced entering special administration on July 7 , acknowledging the company's financial bankruptcy.
Ziglu was founded by former Starling Bank co-founder Mark Hipperson , which had multiple rounds of crowdfunding and once attracted interest from US broker Robinhood for acquisition, but the deal ultimately fell through. This crisis not only raised concerns about Ziglu's fund safety among its customers but also reflects the competitive and regulatory pressures facing the current crypto industry.
Crypto Platforms Decline, Regulatory Pressure Intensifies
Ziglu was established in 2018 , originally named Livecon Services, focusing on combining traditional finance and cryptocurrencies. The company was authorized by the UK Financial Conduct Authority (FCA) as an electronic money institution and registered as a crypto asset company under anti-money laundering regulations, providing electronic money issuance, payment services, and crypto asset products, including a "Boost" account with up to 6% annual returns.
In early 2025 , Ziglu launched the "Crypto on Card" feature, allowing users to spend cryptocurrencies directly, but subsequently Ziglu faced financial difficulties and soon began freezing Boost accounts, prohibiting customers from withdrawing investments.
On June 13 , Ziglu reached a voluntary agreement with FCA , suspending the issuance of electronic money, payment, and crypto asset exchange services. FCA emphasized that this was to protect consumers, reflecting concerns about the company's financial health. Then this week, the company's directors formally applied to the court for special administration, acknowledging that Ziglu was unable to repay its debts, with David Shambrook and Damian Webb from RSM Restructuring Advisory LLP serving as special administrators.
Next steps typically include:
- Special administrators take over the company's daily operations, assessing the company's assets, liabilities, and customer fund status.
- Attempt to recover assets, liquidate cash and cryptocurrencies held by the company.
- Distribute assets to creditors and customers according to legal priority.
- Regularly report progress to the court and regulatory authorities, and communicate subsequent arrangements with customers.
Financial Reports Reveal Losses, Expose Industry Risks
According to Ziglu's 2023 financial report, the company's annual loss reached 4.4 million pounds, even higher at 15.8 million pounds in 2022 . By the end of 2023 , Ziglu held 7.25 million pounds in customer funds, with 6.7 million in cryptocurrencies and 0.545 million in cash, but the report clearly expressed doubts about its ability to continue operating.
Additionally, Ziglu had business dealings with the US crypto company Celsius Network , which went bankrupt in 2022 , being owed over 4 million pounds, though later recovered, highlighting the risks in the crypto lending market.
Customer Withdrawal Difficulties, Uncertain Regulatory and Industry Prospects
Some Ziglu customers report that they are still unable to withdraw funds smoothly and are dissatisfied with the lack of transparency in communication from the company's leadership.
Under the special administration procedure, administrators will prioritize protecting consumer rights and orderly asset liquidation, but due to insufficient regulation in crypto asset businesses, it remains uncertain whether customer funds can be fully recovered. FCA pointed out that most of Ziglu's crypto asset business falls outside the regulated scope, increasing the risk of consumer harm.
