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Defunct Crypto Fintech Ziglu Has $2.7 Million Funding Shortage
Odaily News Ziglu, a British cryptocurrency fintech company that collapsed earlier this year, has a £2 million ($2.7 million) funding gap, leaving thousands of depositors facing the grim prospect of losing their investments. The company was reportedly placed under special administration last week, having previously suspended withdrawals in May, amid growing concerns about its financial management.
Ziglu attracted around 20,000 customers with the promise of high interest returns, especially its Boost product, which offered a yield of up to 6%. Launched in 2021 during a period of low interest rates, Boost was popular for its higher returns. However, the product lacked protection or isolation measures, allowing 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)
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