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

Odaily News: The Dutch Public Prosecution Service has sold cryptocurrencies seized from the bankrupt Dutch crypto platform Knaken, raising $2.5 million to repay creditors. The court-appointed bankruptcy administrator, Carl Hamm, stated that this amount is currently the sole source of funds in the bankruptcy estate. Knaken had offered Dutch users 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 petitioned for liquidation on public interest grounds. 

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