Ziglu Enters Special Administration Amid £24M Deficit

Ziglu, a UK-based digital banking and cryptocurrency platform, has entered special administration, marking a significant financial setback for the company. The move signals critical financial turmoil, jeopardizing its operational future and investor confidence. Founded by ex-Starling Bank executives, Ziglu faced financial difficulties, leading to its special administration appointment on July 7, 2025. Mark Hipperson, the founder and CEO of Ziglu, had established the platform to offer crypto products and e-money services. Regulatory intervention paused Ziglu’s operations, affecting Bitcoin (BTC), Ethereum (ETH), and altcoin holdings. Customers are now restricted to fund withdrawals only.

This development signifies a critical point in the UK crypto market, highlighting regulatory scrutiny and financial vulnerabilities. Immediate reactions highlight widespread concern due to frozen assets and the absence of insurance. Ziglu recorded financial deficits over £24 million, linked partly to the Celsius Network's collapse. This led to a substantial intervention by the Financial Conduct Authority (FCA). Customer assets, totaling over £7.25 million, remain inaccessible following the court's appointment of special administrators, David Shambrook and Damian Webb of RSM Restructuring Advisory LLP. These administrators are tasked with managing Ziglu's special administration process.

This issue has significant impacts on the broader financial landscape. Amid these events, Ziglu's stakeholders face an uncertain future. The inability to access funds, alongside the lack of deposit protection for digital assets, raises pressing concerns within both the customer community and the broader market. Market experts have drawn parallels between Ziglu's predicament and past bankruptcies like Celsius, exacerbating fears of contagion within the digital asset sector.

Historical attempts at acquisitions, such as Robinhood's retracted offer reduced to $60 million, underscore Ziglu's financial instability. Critics argue that the platform's inability to secure robust financial backing ultimately led to its current predicament. As the administration process unfolds, the crypto sector remains vigilant over evolving regulatory landscape and potential ramifications. Data and historical precedents suggest enhanced future scrutiny may regulate operations, shaping the technology's framework within the financial system.

The financial collapse of Ziglu has drawn regulatory focus, particularly concerning the impact on BTC, ETH, and customer withdrawals. The platform's entry into special administration means that administrators have been appointed to manage the company's affairs, with customer fund withdrawals permitted while operations have ceased. The event underscores the regulatory challenges in crypto banking and reflects broader market difficulties for crypto firms, emphasizing the need for robust financial management.

The lack of significant response from industry leaders or the crypto community highlights Ziglu’s smaller market presence. The Financial Conduct Authority (FCA) has not commented further on the matter. The collapse of Ziglu serves as a cautionary tale of fintech overreach, illustrating the risks associated with digital banking and cryptocurrency platforms. The event also echoes challenges within the local crypto market over the past five years, where several companies have faced difficulties similar to Ziglu.