Thousands of savers face fierce hope of losing their investments after administrators uncovered a 2 million pounds ($ 2.7 million) deficiency in Ziglu, a British cryptocurrency fintech who collapsed earlier this year.
The company, who suspended backwards in May, was placed in special administration last week amid its financial management concerns, According to In a week report from the telegraph.
Ziglu attracts about 20,000 customers with the promises of high-interest returns, especially by the “strengthening” product, offering yields up to 6%. Launched in 2021 at a period of low interest rates, the boost became popular because of its increased return.
However, the product is not protected or with a ring ring, allowing the company to use customer funds for daily operations and lending activities. Following the Financial Conduct Authority’s (FCA) Intervention In May, the backwards were frozen, leaving the savers locked in their money for a few weeks.
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Ziglu directors accused of misuse of customer funds
At a recent -only High Court insolvency hearing, directors were accused of incorrect funding, with evidence suggesting that the money from Boost Savers was moved to cover general cash flow issues before the company applied for special administration in June, each telegraph.
The report said that around 4,000 customers were frozen their investments in strengthening, reaching approximately $ 3.6 million. By $ 2.7 million shortcomings, most of these funds can be lost unless recovered by a rescue or sale deal.
Ziglu, founded by former Starling Bank co-founder Mark Hipperson, described its mission as “empowering everyone to benefit from the new world of digital money, easy, safe and affordable”.
The company once costs $ 170 million and Attracted a deal with US FinTech giant robinhood In 2022, eventually fell amidst the disturbance in the crypto market. Ziglu’s administrators, RSM, will now look for consumers for the company.
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The UK has fallen behind the crypto regulation
The UK’s unclear stance on digital asset regulation is the drawing of criticism from industry experts, which Blame the “Procrastination Policy” for the country that falls behind the European Union and the US.
Last month, John Orchard and Lewis McLellan of the Digital Monetary Institute argued that the UK had quoted its early leadership in the shared ledger finance by delaying concrete regulation.
Not like the EU Crypto-Assets markets (MICA) Framework and the recent passage of US Senate of The Genius Actproviding clear guidelines for crypto and stablecoins, the UK’s FCA has not yet confirmed the launch date for its crypto regime.
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