Customers who invested their cash with platform Ziglu have been told to withdraw their funds immediately, after the FCA said it had to cease trading, This Is Money can reveal.

Ziglu said it had signed a 'voluntary undertaking' with the Financial Conduct Authority, which means it will have to stop all regulated activity and registered businesses.

It will not be able to issue electronic money, or act as a cryptoasset exchange provider or custodian wallet provider.

In an email seen by This Is Money, Ziglu told customers that they would not need to 'withdraw all funds from the platform immediately and no later than 25 June 2025.'

It also means that Ziglu cannot accept the deposit of any new funds and is unable to provide the purchase of any additional crypto assets.

Mark Hipperson, chief executive, told customers: 'Crypto assets can be converted to a fiat asset and withdrawn, and if fiat funds are held in a different currency to the one required to enable you to withdraw your funds you can exchange the currency to enable you to withdraw.

'Our customer support teams are available to assist with any inquiries, concerns, or issues you may have in respect of the cessation of activities. 

'You can reach us through our regular customer service channels, which remain fully operational.

'Our online and mobile platforms will remain open until 25 June 2025 and we strongly encourage you to log in, withdraw your funds and download statements that you may require before the expiry of that deadline.'

This Is Money previously revealed customers who invested their cash in Ziglu's 'Boost' accounts had their accounts frozen on 16 May and a week later, said it would be closing the products.

The accounts allow customers to invest cryptoassets (both stablecoins and crypto) to generate a yield.

Ziglu partners with lending platforms that lend the coin to institutional investors like hedge funds.

The platform froze its Boost accounts on 16 May and informed its customers on 23 May that it would be closing the products.

These products remain frozen, according to the platform's latest update.

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.

This latest update comes just months after Ziglu announced it had raised £5million earlier this year, with plans to introduce 'Ziglu Coin'.

An FCA spokesperson said: 'We have been engaging with the firm and they have voluntarily agreed to stop conducting business. Customers with concerns should contact Ziglu’s customer support team in the first instance.”

'Cryptoassets and stablecoins are currently largely unregulated. The law is changing to give us greater oversight and more powers.' 

Ziglu did not respond to a request for comment.