Ziglu, a digital banking and crypto platform founded by former Starling Bank co-founder Mark Hipperson, has entered special administration, signaling severe financial distress.
Ziglu was a high-profile Fintech startup that raised growth capital in several investment crowdfunding rounds. At one point, US based Robinhood was poised to acquire the firm, only to back out of the purchase
The failure of the firm, announced recently, underscores the mounting challenges faced by crypto firms in a volatile market and highlights the increasing regulatory scrutiny surrounding digital asset businesses.
This development has left customers uncertain about their funds and raised broader questions about the stability of the web3 and cryptocurrency industry.
Ziglu, established in 2018 under the name Livecon Services, initially positioned itself as a trailblazer in bridging traditional finance and cryptocurrency.
Authorized by the Financial Conduct Authority (FCA) as an electronic money institution (EMI) and registered as a crypto asset firm under anti-money laundering regulations, Ziglu offered a range of services, including e-money issuance, payment services, and crypto-asset products like its flagship “Boost” accounts.
These accounts allowed customers to invest in cryptocurrencies and stablecoins to earn yields of up to 6% annually, paid weekly, through partnerships with lending platforms catering to institutional investors such as hedge funds.
Earlier this year, Ziglu also launched its “Crypto on Card” feature, enabling users to spend cryptocurrencies directly via a debit card, further integrating digital assets into everyday financial transactions.
However, financial difficulties began to surface publicly earlier this year, when Ziglu froze its Boost accounts, preventing customers from accessing their investments.
This action followed a voluntary undertaking with the FCA on June 13, 2025, which barred Ziglu from issuing e-money, providing payment services, or operating as a cryptoasset exchange and custodian wallet provider.
The FCA’s restrictions, formalized recently, were designed to protect consumers amid growing concerns about the firm’s financial health.
As mentioned in the update, Ziglu’s directors applied to the court for special administration, admitting the company was insolvent.
David Shambrook and Damian Webb of RSM Restructuring Advisory LLP were appointed as special administrators on July 7, 2025, tasked with overseeing the insolvency process and managing the distribution of remaining assets.
Ziglu’s financial troubles were foreshadowed in its 2023 accounts, which revealed a staggering year-end loss of £4.4 million, following a £15.8 million loss in 2022.
The company held £7.25 million in client money at the end of 2023, with £6.7 million in crypto and £545,121 in cash, but doubts about its ability to continue as a going concern were explicitly noted.
Compounding its challenges, Ziglu had significant exposure to the failed Celsius Network, a US-based cryptocurrency company that went bankrupt in 2022, owing Ziglu over £4 million.
While Ziglu reportedly recovered this sum, the incident highlighted the risks inherent in the crypto lending market.
Customers have since reported difficulties accessing their funds, with some expressing frustration over the lack of communication from Ziglu’s leadership, including Hipperson and co-founder John Humpish.
The special administration process, a relatively rare procedure in the UK, places Ziglu under structured supervision, prioritizing consumer protection and the orderly wind-down of operations.
Ziglu has urged all customers to withdraw their e-money and crypto-assets from exchange and wallet accounts, though uncertainty remains about the timeline and feasibility of these withdrawals.
The FCA has emphasized that Ziglu’s crypto-asset activities, unlike its e-money services, are largely unregulated, complicating recovery efforts for affected customers.
Recent market volatility, exemplified by Bitcoin’s brief surge to nearly $123,000 following a strong US economic report, has exposed the fragility of many crypto firms.
Ziglu’s downfall serves as a reminder of the risks in digital asset markets and the need for robust regulatory frameworks. It is also a cautious note for smaller investors who participated in the online securities offering.
As the FCA continues to crack down on crypto-related financial misconduct, Ziglu’s customers and the wider industry will be watching to see how this insolvency unfolds.