- The entry into administration follows regulatory intervention by the FCA.
- Ziglu reported over £24 million in losses.
- Customer assets remain locked with no insurance protection.
Ziglu, a UK-based crypto platform, has entered special administration following financial losses. The UK court appointed David Shambrook and Damian Webb from RSM Restructuring Advisory LLP on July 7, 2025, to manage this process.
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.
RSM Restructuring Advisory LLP, Special Administrators, All customer funds and assets remain frozen pending further assessment; customers are advised to monitor official updates (no direct blog or Twitter post available as of this publication). source
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.
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