Event Overview
The Dutch Public Prosecution Service (OM) has petitioned the Rotterdam District Court to declare bankruptcy for crypto trading platform Knaken Cryptohandel B.V. and its affiliated payment institution Stichting Knaken Payments. The move follows a warning from the Dutch Authority for the Financial Markets (AFM) that the platform had been illegally offering crypto exchange and custody services without the required license.
Regulatory Action Details
Although Knaken claimed to have ceased operations and entered a liquidation process, the platform has completely stopped making payments to clients. The OM expressed concerns that the liquidation lacks order and could harm investor interests, prompting the bankruptcy petition. If approved, a court-appointed liquidator will take over assets and prioritize creditor funds. Separately, based on a report from the AFM, the Dutch Fiscal Information and Investigation Service (FIOD) has launched a parallel criminal investigation into suspected crimes. On June 29, authorities executed multiple searches, seizing digital storage devices and freezing part of the company's assets. No arrests have been made so far.
Implications for the Industry
This case represents a significant enforcement action by Dutch regulators in the crypto space. The AFM has long emphasized that crypto firms must comply with anti-money laundering and consumer protection rules. The Knaken case serves as a stark reminder of the necessity of proper licensing. If the court grants the bankruptcy request, creditors may face prolonged recovery timelines. Meanwhile, the FIOD criminal probe could uncover larger flows of illicit funds, shaping the future of crypto regulation in the Netherlands and beyond.