Thousands of saves faced a serious possibility of losing their investment at a British Cryptocurrency Fintech, a British cryptocurrency Fintech, 2 million pounds ($ 2.7 million) at the beginning of this year.
The company, which suspended the withdrawal in May, was placed in special administration last week, which was amid increasing concerns over its financial management, According For Sunday’s report from Telegraph.
Ziglu attracted about 20,000 customers with promises of high-onion returns, especially through its “boost” product, which offered a yield of up to 6%. Launched in 2021 during a period of low interest rates, the boost became popular due to its high returns.
However, the product was not preserved or ring-fences, allowing the company to use customer funds for day to day operations and lending activities. After Financial Conduct Authority (FCA) Interference In May, the withdrawal was frozen, which made the Sever out of their money for weeks.
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Ziglu directors accused of misusing customer money
Recently, in a bankruptcy hearing of the High Court, directors were accused of mismanagement of funds, suggested that funds from boost saves were diverted to cover general cash flow issues before applying to special administration in January, according to Telegraph.
The report said that about 4,000 customers were frozen for their promoted investment, in total about $ 3.6 million. With a decrease of $ 2.7 million, most of these funds can be lost until the rescue or sales are recovered through the deal.
Established by former Starling Bank co-founder Mark Hipperson, Ziglou described his mission as “easily, safe and inexpensive” to empower everyone to empower everyone to benefit from the new world of digital money.
The company was once given a price of $ 170 million and attracted a deal in 2022 with US Fintech legend Robinhood, which later fell through the turmoil of the Crypto market. Ziglu’s administrator, RSM, will now look for buyers for the company.
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Britain falls behind Crypto Regulation
The UK’s unclear stance on digital asset regulation is criticizing the industry experts, blaming the “policy laxity” for the European Union and the country falling behind the US.
Last month, John Orchard and Lewis McLall of the Digital Monetary Institute argued that the UK had taken its initial lead in the laser finance distributed by delaying solid regulatory operations.
In contrast to the Crypto-assets (MICA) Framework, in contrast to the European Union markets and the recent route of the American Senate, which provides clear guidelines for Crypto and Stabecin, the FCA of the UK still lacks a confirmed launch date for its Crypto regime.
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