Ziglu Faces $2.7 Million Shortfall, Potential Losses for Boost Savers Amid Administration
2025-07-13 10:40:22
Main Idea
Ziglu's collapse reveals a £2 million shortfall affecting 20,000 customers, highlighting risks in unprotected crypto savings and the UK's slow regulatory response to digital assets.
Key Points
1. Ziglu's 'Boost' savings product promised up to 6% yields but left 20,000 customers at risk due to a £2 million shortfall.
2. Approximately 4,000 Boost investors had $3.6 million diverted improperly, as revealed in a High Court insolvency hearing.
3. Ziglu, once valued near $170 million, attracted interest from Robinhood before its collapse amid broader crypto market instability.
4. The UK's regulatory framework lags behind global peers like the EU's MiCA and the US's GENIUS Act, lacking clear guidelines for crypto stability.
5. The incident underscores the need for comprehensive UK crypto regulations to balance innovation with consumer protection.
Description
Ziglu’s recent financial collapse reveals a $2.7 million shortfall, putting thousands of crypto savers at risk of significant losses. The British fintech’s popular “Boost” product, offering high-interest returns, was not
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