Dutch Crypto Platform Knaken Declared Bankrupt by Court, Investigation Launched into Missing Over €7 Million in User Assets

Odaily reports that the Rotterdam District Court in the Netherlands has declared the cryptocurrency trading platform Knaken Cryptohandel BV and its associated foundation bankrupt, following prosecutors' statements that approximately €7 million (around $8 million) in client assets on the platform cannot be recovered. The court ruled on Thursday that since Knaken has suspended its platform services and restricted user access to accounts, initiating bankruptcy proceedings will help facilitate an orderly liquidation of the company's assets. The court noted that the company's assets are currently insufficient to fully repay user funds, and users also lack sufficient information to assess their own legal rights.

The Dutch Public Prosecution Service filed the bankruptcy petition on June 30, having already initiated a criminal investigation into the missing funds. The Dutch Fiscal Information and Investigation Service (FIOD) also raided Knaken's offices in late June, seizing relevant equipment and assets.

Founded in 2017 and headquartered in Rotterdam, Knaken ceased operations in early June this year. According to Dutch media outlet NL Times, the company was not listed on the register of authorized crypto asset service providers held by the Netherlands Authority for the Financial Markets (AFM).

The AFM has previously stated that after the Netherlands ended the transitional period for the European Union's Markets in Crypto-Assets Regulation (MiCA) on June 30, 2025, it has begun taking supervisory and enforcement actions against unauthorized crypto asset service providers. (Cointelegraph)