Dutch prosecutors sell crypto seized from bankrupt platform Knaken, raising $2.5 million

Odaily Planet Daily News: The Dutch Public Prosecution Service has sold cryptocurrencies seized from the bankrupt Dutch crypto platform Knaken, raising $2.5 million to repay creditors. Court-appointed bankruptcy administrator Carl Hamm stated that this amount is currently the sole source of funds in the bankruptcy estate. Knaken had provided Dutch users with cryptocurrency buying, selling, and custody services through its app, but did not obtain the license required by the country's market regulator. The platform ceased operations in early June, and the Rotterdam court declared it bankrupt on July 16 after prosecutors filed for liquidation on public interest grounds. 

Hamm estimates that customer investments totaled between $12 million and $14 million and has notified approximately 6,300 customers to lower their expectations. A lawyer representing one customer questioned whether prosecutors had the authority to sell the relevant assets; Knaken founder Ronald J. denied part of the investment amount and stated that the platform, acting as a broker, had recorded all orders. (Decrypt)