Ziglu, the crypto startup launched by former Starling co-founder Mark Hipperson, has entered administration.
The UK-based cryptocurrency business once commanded a $170 million price tag, but has been plagued by cash-flow problems as investors cooled on fintech prospects during the 2023 tech downturn.
It last raised raised £5 million in February at a £45 million valuation and signed a £10 million term sheet to fund the launch of its own stablecoin.
However, in May, the FCA took action to protect consumers, by placing restrictions on Ziglu in relation to particular products. On 17 June, Ziglu agreed to stop carrying out both payments and cryptoasset activities while allowing customers to withdraw funds.
The FCA has since rescinded its authorisation of Ziglu as an e-money instituion.
David Shambrook and Damian Webb of RSM Restructuring Advisory LLP have been appointed as special administrators.