UK Crypto App Ziglu Enters Special Administration

Ziglu has entered special administration as financial pressures mount, impacting customer funds and crypto activities in the UK.

Ziglu, a UK-based crypto app, entered special administration on July 7, 2025, under the oversight of RSM Restructuring Advisory LLP’s David Shambrook and Damian Webb.

This event underscores the challenging financial landscape for fintech firms and raises concerns over customer fund security within the crypto sector.

Failed Robinhood Acquisition Triggers Ziglu’s Financial Crisis

Ziglu, founded by Mark Hipperson, faces financial turmoil after a failed acquisition by Robinhood impacted its funding options. The UK’s Financial Conduct Authority (FCA) has restricted Ziglu’s activities to ensure customer protection.

Leading the administration are RSM’s David Shambrook and Damian Webb, tasked with managing the financial proceedings. Ziglu users are urged to withdraw their funds as the company is under special administration.

Our actions provided significant protections for customer money and other assets the firm held. Ziglu has since requested that all customers withdraw e-money and crypto exchange/wallet funds from their accounts. — FCA (Financial Conduct Authority), Official Statement, FCA Source

User Concerns Escalate Over Fund Security

User concerns revolve around fund withdrawal timelines and asset security amid administrative proceedings. The market’s trust in similar fintech services is affected, highlighting vulnerabilities in regulatory and financial models.

While historical instances show limited contagion effect, the lack of communication from Ziglu’s leadership has compounded user frustration. The FCA assures assurance of asset protection during the administration process.

Ziglu’s Case Reflects Broader Fintech Insolvency Trends

The situation mirrors previous insolvencies of UK fintech firms post-crypto downturns, reflecting regulatory interventions aimed at safeguarding user funds. The administration marks another chapter in fintech challenges.

Kanalcoin experts suggest Ziglu’s case may alter market strategies, emphasizing stronger regulatory resilience. The absence of industry leader comments marks a cautious optimism pending tangible outcomes.

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