Ziglu Enters Special Management After £24M Loss, FCA Intervention

Ziglu, a prominent British crypto platform, has entered special management following substantial financial losses and regulatory intervention. The company, founded by Mark Hipperson, has been appointed special administrators by the court, with RSM Restructuring Advisory taking charge on July 7, 2025. This move comes after Ziglu incurred over £24 million in losses, including £4 million lost due to the collapse of Celsius Network.

The Financial Conduct Authority (FCA) played a pivotal role in halting Ziglu's operations, leading to the freezing of user funds and the suspension of client withdrawals. The absence of protection from deposit insurance schemes has heightened concerns among affected clients, who have expressed frustration and distrust over the lack of access to their assets. The FCA's directive has left users unable to access or withdraw their funds, exacerbating the uncertainty surrounding the platform's future.

The special management process involves a comprehensive assessment of Ziglu's financial situation, with the goal of either restructuring the company or winding down its operations in an orderly manner. The appointed administrators will prioritize protecting the interests of creditors and stakeholders while exploring potential recovery avenues. This process is expected to be intricate and time-consuming, given the complexity of Ziglu's business model and the regulatory environment.

The impact of Ziglu's financial distress extends beyond the company, affecting the broader cryptocurrency and digital banking ecosystems. Industry observers highlight the importance of regulatory interventions in crypto firms under financial strain, emphasizing the need for stronger regulatory frameworks to stabilize cryptocurrency markets during economic instabilities. The outcome of this special administration could set a precedent for how similar cases are handled in the future, underscoring the necessity for greater transparency and accountability within the fintech sector.