5 days ago
EXCLUSIVE Customers of crypto firm left without access to funds as it freezes 'Boost' accounts
Customers who invested in crypto with platform Ziglu have had their accounts frozen and it's unclear when they'll next have access, This Is Money can reveal.
Ziglu's 'Boost' products offer customers the chance to earn up to 6 per cent interest on crypto, which is paid weekly.
The accounts allow customers to invest crypto assets (both stablecoins and crypto) to generate a yield.
Ziglu, which was bought by Robinhood in 2022, partners with lending platforms that lend the coin to institutional investors like hedge funds.
The platform froze its Boost accounts on 16 May but it took a week to tell customers it would be closing the products.
The same day, the Financial Conduct Authority said Ziglu 'must not take any actions with respect to the Boost Accounts, as stipulated in the restrictions, without prior written consent from the Authority.'
It added that the firm could not allow customers to dispose of, withdraw, transfer, deal with or diminish the value of the accounts. It can also not take any new deposits from customers into the accounts.
The regulator would not confirm to This is Money if it is currently conducting an investigation and said: 'Customers with concerns should contact Ziglu's customer support team in the first instance.'
While Ziglu is regulated by the FCA, Boost accounts are not and are not subject to the same safeguarding as any funds held in their cash accounts.
Customers are not protected by the Financial Services Compensation Scheme or Financial Ombudsman Service.
An email from Ziglu sent on Tuesday and seen by This Is Money told customers: 'We understand that many of you will have concerns about getting access to your funds.
'We assure you that we are continuing to work with the FCA on the process of planning the steps required to fully retire the Boost product, including the return of all funds, as a matter of priority.'
It said it would provide an update by 13 June, but it has told customers they do not need to take 'immediate action'.
'We may contact you if we require additional information to complete the return of your funds.
'We understand that the closure of our Boost products and the associated delays to the return of your funds may be disappointing and we deeply regret any inconvenience or distress this may cause or have caused.
One customer, who has thousands in his account, told This Is Money: 'I was unconcerned at first when Ziglu warned that their 'Bitcoin Boost' accounts would be discontinued.
'It sounded like they had a product that they had discovered was unprofitable, decided to stop offering it, and would soon set a deadline for clients to switch. But withdrawals from the accounts have now been frozen for more than two weeks.
'This is a bit more worrying and also seems counterintuitive if what they want is people out of those accounts.
'While Ziglu have implied that there is no risk of customers not receiving their funds back in full, I'm sure I'm not the only Ziglu customer who would like a bit more information.
'Something from the FCA would be nice too, including preferably an explicit assurance that funds held by Ziglu aren't at risk in any way.'
Ziglu also offers customers investment accounts, which appear unaffected.
Mark Hipperson, chief executive of Ziglu, told This Is Money: 'Ziglu took the decision on 16 May 2025 to cease its Boost product and we notified the FCA of this withdrawal and they have full oversight of our plans.
'We are in communication with our customers about enabling transfer of these assets to their Fiat accounts which we expect to occur in June.'
