Ziglu Enters Administration Following FCA Action

July 10, 2025 • FinTech News
Ziglu Enters Administration Following FCA Action

The Fall of a Former Fintech Darling

Ziglu, the ambitious cryptocurrency platform founded by Starling Bank co-founder Mark Hipperson in 2020, has entered administration after failing to overcome a perfect storm of regulatory pressure and financial challenges. The London-based startup, which once boasted a $170 million valuation and positioned itself as a bridge between traditional and crypto finance, has become the latest casualty in the volatile digital asset sector.

Regulatory Hammer Falls

The Financial Conduct Authority (FCA) delivered successive blows that ultimately sealed Ziglu’s fate:

Key Regulatory Actions:

  • May 2025: FCA imposed product restrictions citing consumer protection concerns

  • June 17, 2025: Ordered to cease all payment and cryptoasset activities

  • Subsequent revocation of e-money institution authorization

  • Complete shutdown of UK operations mandated

“The FCA’s increasingly strict stance left Ziglu with no runway,” noted a fintech analyst familiar with the situation.

Financial Struggles Compound Problems

Behind the scenes, Ziglu faced mounting monetary pressures:

Funding Challenges:
✔ February 2025: Raised just £5M at 73% valuation drop (£45M vs $170M peak)
✔ Failed to secure £10M stablecoin development funding
✔ Couldn’t attract additional investment during crypto winter
✔ Burn rate exceeded dwindling capital reserves

Administration Process Begins

RSM Restructuring Advisory partners David Shambrook and Damian Webb have taken control of the wind-down:

Administration Priorities:

  1. Secure remaining customer assets

  2. Facilitate final fund withdrawals

  3. Assess creditor claims

  4. Determine potential asset sales

“Our focus is protecting stakeholders during this transition,” Shambrook stated in a release.

Broader Market Implications

Ziglu’s collapse reflects several industry-wide trends:

Regulatory Landscape:
→ UK taking harder line on crypto oversight
→ Increased scrutiny of fintech operations
→ Stricter consumer protection enforcement

Market Conditions:
✔ Venture capital pullback from crypto
✔ Valuation corrections across sector
✔ Survival challenges for mid-tier players

From Promise to Failure Timeline

2019: Founded by Starling co-founder Mark Hipperson
2020: Launches crypto trading platform
2021: Reaches $170M valuation
2022: Acquisition interest from Robinhood
2023: Funding challenges emerge
2025: Regulatory restrictions lead to collapse

Lessons for Crypto Startups

The Ziglu story offers crucial warnings:

  1. Regulatory compliance can’t be afterthought

  2. Valuation ≠ Viability

  3. Diverse revenue streams essential

  4. Adaptation speed critical in volatile markets