The bankruptcy of the crypto platform Ziglu threatens the funds of 20,000 customers who have frozen their cryptocurrencies with it.
Ziglu, the UK-based cryptocurrency platform, announced its bankruptcy and entry into administration after its financial collapse. Now, more than 20,000 customers face the risk of losing their frozen cryptocurrencies on the platform.
Ziglu was founded in 2018 by Mark Hipperson, the former co-founder of Starling Bank, and was a pioneer in linking traditional finance with cryptocurrencies. The American company Robinhood nearly acquired it earlier.
In 2021, Ziglu launched its investment product 'Boost', which offered returns of up to 6% at a time when interest rates were at historic lows. This product attracted a large number of savers seeking lucrative returns.
However, things started to falter financially at the beginning of this year. The company had to resort to customer funds after a major investment deal failed. Due to the nature of the 'Boost' product, which was not protected like traditional savings accounts or cryptocurrency storage accounts, its terms allowed the company to use customer funds for daily spending and to generate returns by lending them.
Hipperson, who no longer works at the company, stated that the board was close to securing new funding just weeks before the platform's restrictions were imposed, and that this investment would have ensured compensation for 'Boost' savers against any potential losses.
In May 2025, the Financial Conduct Authority (FCA) imposed restrictions on the platform to protect customers. One month later, Ziglu ceased operations, raising uncertainty over the fate of customer funds. The company's directors later applied to place it under administration after failing to meet its financial obligations and formally declaring bankruptcy.
Ziglu incurred losses of £24 million over two years due to its failed investments. Now, more than 20,000 customers face uncertainty about the fate of their millions in funds.
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