Defunct Crypto Fintech Ziglu Has $2.7 Million Funding Shortage

Odaily Planet Daily News Ziglu, a British cryptocurrency fintech company that collapsed earlier this year, has a funding gap of 2 million pounds ($2.7 million), and thousands of depositors are facing the grim prospect of losing their investments. It is reported that the company was placed under special management last week due to growing concerns about the company's financial management, and withdrawal services were previously suspended in May. Ziglu attracted about 20,000 customers with the promise of high interest returns, especially its "Boost" product, which has a yield of up to 6%. Launched in 2021 during the low interest rate period, Boost has been popular for its higher rate of return. However, the product lacks protection or isolation measures, which has enabled 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 and depositors' funds were frozen for several weeks. (Cointelegraph)