Ziglu Enters Special Administration Amid Financial Struggles

Ziglu, a UK-based digital banking and cryptocurrency platform, has entered special administration, marking a significant financial setback for the company. The move, announced on July 7, 2025, comes as a result of severe financial struggles that have jeopardized its operational future and investor confidence. The administration process involves the appointment of administrators who will oversee the company's affairs, business, and property. This development has raised concerns about the potential for further crypto bankruptcies and the broader implications for the digital asset market.

The special administration of Ziglu has led to the cessation of its operations, with customers now restricted to withdrawing their funds. This restriction affects the platform's holdings of Bitcoin (BTC) and Ethereum (ETH), as well as other altcoins, leaving users uncertain about the future of their investments. The regulatory intervention has paused Ziglu's activities, drawing attention from authorities and highlighting the need for robust financial management in the crypto sector.

Founded by former executives of Starling Bank, Ziglu was established to offer a range of crypto products and e-money services. The company's financial collapse has drawn comparisons to other failed firms in the UK fintech industry, reflecting broader challenges within the local crypto market over the past five years. Despite the setback, industry leaders and the crypto community have remained largely silent, underscoring Ziglu's relatively smaller market presence.

The founder and CEO of Ziglu, Mark Hipperson, acknowledged the financial difficulties but downplayed the impact on UK retail customers. "A few companies have failed that deal with cryptocurrencies. There can be smaller failures that do impact the marketplace, but I don’t believe many of those impacted UK retail customers," he stated. However, the lack of a significant response from industry leaders or the crypto community suggests that the impact of Ziglu's collapse may be more limited than initially feared.

The special administration of Ziglu serves as a reminder of the regulatory challenges faced by crypto banking platforms. The event underscores the need for stringent financial management and oversight to prevent similar collapses in the future. As the crypto market continues to evolve, the case of Ziglu highlights the importance of regulatory intervention and the potential risks associated with digital asset investments.