A Dutch court has declared cryptocurrency platform Knaken bankrupt after prosecutors reported 7 million euros in customer assets were missing. The court cited insufficient assets to repay users and a lack of clarity on their legal standing.
The bankruptcy of Knaken highlights the risks associated with unregulated cryptocurrency platforms and the potential loss of customer funds, underscoring the importance of regulatory oversight in the digital asset space.
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.
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