Event Overview: Dutch Prosecutor Seeks Bankruptcy for Knaken, 30,000 Users' Funds Frozen
On June 30, the Dutch Public Prosecution Service filed a request with the Rotterdam District Court to declare the crypto platform Knaken and its affiliated payment institution Stichting Knaken Payments bankrupt. The prosecutor stated that the move is in the "public interest." Knaken ceased operations in early June, leaving approximately 30,000 users unable to withdraw funds held on the platform. To date, no clear plan for fund restitution has been provided, exposing users to significant financial losses.
Regulatory Violation: Failure to Obtain AFM License Under MiCA
The prosecution argued that Knaken operated without the required license from the Dutch Authority for the Financial Markets (AFM), as mandated by the European Union's Markets in Crypto-Assets Regulation (MiCA). The platform's liquidation process lacked orderly management; it stopped making payments to customers and reportedly advised users not to file compensation claims. This conduct may further harm user rights and violate Dutch consumer protection laws.
Criminal Investigation: FIOD Steps In, Seizes Equipment and Assets
Simultaneously, the Dutch Fiscal Information and Investigation Service (FIOD) has launched a criminal investigation into Knaken. This week, investigators searched relevant premises, seizing laptops, mobile phones, and some company assets. No arrests have been made yet. If the court approves the bankruptcy petition, a court-appointed trustee will take over the company's assets and determine the reimbursement arrangements for customers and other creditors. Future developments will depend on legal proceedings and the outcome of the investigation.
