Key facts
- A Dutch court has declared cryptocurrency platform Knaken bankrupt.
- Approximately 7 million euros ($8 million) in customer assets are missing.
- The court ruled bankruptcy was necessary due to insufficient assets to repay users.
- Knaken blocked access to its platform and accounts in early June.
- A criminal investigation into the missing funds was opened by the Dutch Public Prosecution Service.
- Knaken is not registered with the Dutch Authority for the Financial Markets (AFM).
A Dutch court has declared cryptocurrency platform Knaken bankrupt after prosecutors reported that approximately 7 million euros ($8 million) in customer assets were missing. The Rotterdam court issued the ruling on Thursday, stating that bankruptcy was necessary to ensure an orderly settlement because the company lacks sufficient assets to fully repay its users.
According to the court, customers also lack sufficient information to determine their legal position. Knaken had blocked access to its platform and accounts in early June. The Dutch Public Prosecution Service filed the bankruptcy petition on June 30, initiating a criminal investigation into the missing funds. The Netherlands’ financial crime investigation service also conducted a raid in late June, seizing devices and assets.
Founded in Rotterdam in 2017, Knaken is not listed in the Dutch Authority for the Financial Markets’ (AFM) register of authorized crypto-asset service providers. The AFM has been taking action against unauthorized providers following the end of the Netherlands' Markets in Crypto-Assets (MiCA) regulation transition period on June 30, 2025.