Ziglu Enters Special Administration Amid Financial Struggles

Ziglu, a UK-based financial institution known for its crypto-friendly services, has entered special administration following severe financial difficulties. The firm, which was authorized by the Financial Conduct Authority (FCA) to issue electronic money and provide payment services, faced operational challenges that necessitated this intervention. David Shambrook and Damian Webb from RSM Restructuring Advisory LLP were appointed as special administrators to manage the process.

Ziglu's product offerings included a variety of crypto asset services, such as lending, which fell outside the FCA’s regulatory perimeter. However, the FCA maintained oversight of Ziglu’s compliance with anti-money laundering (AML) regulations, ensuring that consumer protection remained a top priority throughout the administration period.

In response to the financial turmoil, the FCA took proactive measures to safeguard customers. On May 23, 2025, the FCA imposed restrictions on certain Ziglu products. Subsequently, on June 17, Ziglu agreed to halt all payment and crypto asset operations, allowing users to withdraw their funds securely. This measured approach underscores the FCA’s commitment to maintaining stability within the UK’s evolving crypto financial landscape.

The collapse of Ziglu highlights the challenges faced by crypto-friendly financial institutions in navigating regulatory frameworks and operational complexities. The FCA’s intervention and the appointment of special administrators aim to mitigate the impact on customers and ensure a smooth transition during this period of financial turmoil. The FCA’s proactive measures, including the imposition of restrictions and the facilitation of secure fund withdrawals, demonstrate its dedication to protecting consumers and maintaining stability in the financial sector.