Dutch crypto platform Knaken declared bankrupt

Dutch crypto platform Knaken was declared bankrupt after €7M in customer funds went missing. Customers lost access, and a criminal investigation is ongoing.

Dutch cryptocurrency platform Knaken has been declared bankrupt by a Rotterdam court after prosecutors reported that around €7 million in customer funds were unaccounted for. The bankruptcy petition was filed by the Dutch Public Prosecution Service in late June, following warnings from the Dutch Authority for the Financial Markets about serious concerns at Knaken. The court determined that Knaken lacked sufficient assets to repay customers and failed to inform users about the significant deficit. Access to the platform was blocked, preventing customers from viewing their balances or the company’s financial status. The court rejected Knaken’s proposal to distribute remaining assets directly to users, stating that bankruptcy was necessary for an orderly settlement. Stichting Knaken Payments, the affiliated foundation holding customer funds, was also placed into bankruptcy. A criminal investigation into the missing funds is ongoing, raising questions about regulatory oversight and consumer protection in the Dutch crypto sector.