UK-based bank Ziglu, founded by ex-Starling Bank executives, announced its entry into special administration on July 7, 2025, due to financial struggles.
Overview of Ziglu's Situation
Ziglu, which aimed to provide crypto products and e-money services, has declared financial insolvency. As a result, a special administration has been appointed to manage the company's future actions.
Impact on the Crypto Market
Ziglu's financial troubles are directly affecting customers and their holdings in cryptocurrencies, including BTC and ETH. Customers are now restricted to withdrawals, prompting regulatory scrutiny of the company's situation.
"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," said **Mark Hipperson**, Founder & CEO of Ziglu.
Regulatory Context and Implications
The situation with Ziglu highlights the regulatory challenges faced by companies in the crypto space. Experts note that this reflects broader market difficulties and underscores the need for robust financial management.
The issues faced by Ziglu underscore the vulnerability of crypto companies to market and regulatory changes, serving as a warning to other market participants.
