UK Crypto Bank Ziglu Enters Special Administration Amid Financial Crisis

According to PANews, UK-based crypto banking platform Ziglu has entered special administration, indicating severe financial distress for the company founded by former Starling Bank co-founder Mark Hipperson. Ziglu's board sought court approval for special administration, acknowledging the company's insolvency. On July 7, David Shambrook and Damian Webb from RSM Restructuring Advisory LLP were appointed as special administrators to oversee the bankruptcy proceedings and manage the distribution of remaining assets. Financial reports reveal that Ziglu has incurred losses exceeding £20 million for two consecutive years and suffered over £4 million in losses due to the bankruptcy of Celsius Network. On June 13, the Financial Conduct Authority (FCA) ordered Ziglu to cease its electronic money issuance and crypto custody operations. The special administrators disclosed that by the end of 2023, the company held £7.25 million in customer funds, with £6.7 million in crypto assets. Currently, user withdrawal channels are frozen, and the FCA has warned that Ziglu's crypto operations are not covered by deposit insurance. In June, it was reported that Ziglu's Boost account services were frozen, preventing customers from withdrawing funds.