According to Decrypt, the Dutch Public Prosecution Service has applied to the Rotterdam District Court to declare bankruptcy for crypto platform Knaken and its affiliated entity Stichting Knaken Payments. The prosecution stated the move is 'in the public interest,' as the platform has been suspended since early June 2025, leaving approximately 30,000 clients unable to access their crypto holdings.
Platform Operations and Compliance Failures
Knaken offered exchange, trading, and storage services for euros against major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). However, the company never secured the MiCA (Markets in Crypto-Assets) license required by the Dutch Authority for the Financial Markets (AFM). As the EU MiCA transitional period concludes on July 1, 2025, unlicensed entities are no longer permitted to legally serve EU clients. Although Knaken publicly stated it was 'gradually winding down' its operations, prosecutors deemed the process lacked proper order and failed to safeguard customer assets.
Parallel Criminal Investigation: Equipment Seized, No Arrests Yet
In addition to the bankruptcy filing, the Public Prosecution Service has launched a criminal investigation. On Monday (June 29), investigators searched Knaken's premises, seizing electronic devices and corporate assets. No arrests have been made to date. The exact focus of the criminal probe remains undisclosed, but industry speculation centers on potential unlicensed operations, misappropriation of client funds, or violations of anti-money laundering (AML) regulations.
MiCA Transition Deadline: Regulatory Storm Intensifies
The Knaken case unfolds just as the EU MiCA transitional period ends on July 1. Previously, many member states granted local crypto platforms a grace period to complete licensing, but Knaken appears to have missed the deadline. With the transition over, any unlicensed crypto platform still serving EU clients faces severe legal risks. The Dutch prosecution's aggressive action sends a clear signal: regulators will use strong measures against non-compliance to protect investor interests and financial stability.
For Knaken's 30,000 customers, the immediate future depends on the court's bankruptcy decision and the outcome of the criminal investigation. If bankruptcy is approved, asset distribution will follow standard liquidation priority rules. This case serves as a stark warning to other crypto platforms operating in regulatory gray zones: in the EU, operating without a license can lead not only to fines but also forced bankruptcy and criminal prosecution.