UK crypto firm Ziglu has disclosed a 2.70 million dollar funding gap, which has entered a special management state in June

Ziglu, the British cryptocurrency fintech firm that collapsed earlier this year, is 2 million pounds ($2.70 million) short of funding, leaving thousands of savers facing the grim prospect of losing their investments, Cointelegraph reported. It is understood that the company was placed under special management last week due to growing concerns over the management of the company's finances, having previously suspended withdrawals in May.
Ziglu has attracted around 20,000 customers with the promise of high interest rate returns, notably its "Boost" product, which offers a yield of up to 6%. Launched in 2021 during a period of low interest rates, Boost has been popular for its higher rate of return. However, the lack of protection or isolation on the product has resulted in the company being able to use customer funds for day-to-day operations and lending activities. Withdrawals were frozen after the UK's Financial Conduct Authority (FCA) stepped in in May, with depositors' funds frozen for weeks.