Dutch crypto platform Knaken declared bankrupt by court, investigation launched into missing user assets exceeding 7 million euros

Odaily Planet Daily News The Rotterdam District Court in the Netherlands has declared cryptocurrency trading platform Knaken Cryptohandel BV and its affiliated foundation bankrupt, following prosecutors' statements that approximately 7 million euros (about $8 million) in client assets from the platform are unrecoverable. The court ruled on Thursday that since Knaken has suspended platform services and restricted user access to accounts, initiating bankruptcy proceedings would facilitate an orderly liquidation of the company's assets. The court noted that the company's current assets are insufficient to fully repay user funds, and users also lack adequate information to determine their legal rights.

Dutch prosecutors filed the bankruptcy petition on June 30, after having already launched a criminal investigation into the missing funds. The Dutch Financial Crime Investigation Agency (FIOD) also raided Knaken's office premises in late June and seized related equipment and assets.

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

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