Key facts
- Dutch prosecutors have requested a court to declare crypto platform Knaken bankrupt.
- Concerns over customer fund access and public interest are cited.
- Knaken has been offline since early June.
- Approximately 30,000 users are impacted.
- A separate criminal investigation into Knaken is underway.
Dutch prosecutors have initiated proceedings to have the cryptocurrency platform Knaken declared bankrupt. The request was filed with a court, citing significant public interest and serious concerns regarding the accessibility of customer funds. Knaken has been offline since the beginning of June, leaving an estimated 30,000 users unable to access their assets. In addition to the bankruptcy proceedings, a separate criminal investigation into the platform is also in progress. The exact nature of the criminal investigation has not been disclosed, but it is understood to be related to the platform's operational issues and the handling of customer funds. The bankruptcy request highlights the urgency of the situation and the potential for further complications if the platform's assets are not managed under court supervision. The impact on the 30,000 affected users is substantial, as they face an uncertain timeline for recovering their investments. The Dutch authorities are emphasizing the public interest aspect, suggesting that the platform's failure has broader implications beyond just its immediate customer base. This move by the prosecutors aims to bring clarity and structure to the situation, potentially paving the way for asset recovery or distribution.