A deficit of £2 million (around $2.7 million) has been found at Ziglu, a collapsed UK-based crypto company.
This gap between customer funds and company assets has raised concerns that many users may never get their money back.
Ziglu officially entered special administration after already freezing withdrawals in May, according to a July 13 report by The Telegraph.
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The platform gained around 20,000 users by offering high-yield returns through a product called “Boost”, which promised interest rates of up to 6%.
Boost gained popularity quickly, but the funds were not kept separate from the company’s finances. Instead, Ziglu used the money to support its daily operations and loans.
In May, the UK’s financial regulator stepped in, and customers were blocked from withdrawing their funds. Since then, users have been unable to access their money.
A High Court hearing revealed that directors may have used money from Boost savers to cover the company’s regular expenses before applying for administration in June.
According to details shared during the hearing, around 4,000 customers had funds in the Boost product, which totaled nearly $3.6 million. Due to the missing $2.7 million, there is a risk that these savers could lose a substantial portion of their investments unless new funding is secured or a buyer takes over the company.
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Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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