A court in Rotterdam has declared cryptocurrency platform Knaken Cryptohandel BV and its affiliated foundation bankrupt after prosecutors said about €7 million, or roughly $8 million, in client assets could not be recovered. The ruling, issued on Thursday, said insolvency proceedings would allow an orderly liquidation after Knaken suspended platform services and restricted users’ access to their accounts. The court also said the company’s remaining assets were not enough to fully repay users and that customers lacked sufficient information to assess their legal position. Dutch prosecutors filed for bankruptcy on June 30 and had already opened a criminal investigation into the missing funds. The Dutch financial crime agency FIOD searched Knaken’s offices in late June and seized equipment and assets. Knaken, founded in 2017 and based in Rotterdam, stopped operating in early June. According to Dutch media outlet NL Times, the company was not listed on the Dutch Authority for the Financial Markets’ register of authorized crypto-asset service providers. AFM has said it began taking supervisory and enforcement action against unauthorized firms after the Netherlands ended the MiCA transition period on June 30, 2025.
A Rotterdam court has declared cryptocurrency platform Knaken Cryptohandel BV and its affiliated foundation bankrupt after prosecutors said about €7 million, or roughly $8 million, in client assets could not be recovered.
In a ruling issued Thursday, the court said bankruptcy proceedings would help ensure an orderly liquidation of the company’s assets after Knaken suspended platform services and limited users’ access to their accounts.
Court says assets are insufficient to fully repay customers
The court said the company’s remaining assets are not enough to fully reimburse user funds. It also said customers do not have enough information to determine their legal position.
Prosecutors filed on June 30 and a criminal probe is underway
Dutch prosecutors submitted the bankruptcy petition on June 30. A criminal investigation had already been opened over the missing funds.
The Dutch financial crime agency, FIOD, also raided Knaken’s office locations in late June and seized related equipment and assets.
Knaken stopped operating in early June
Knaken was founded in 2017 and is headquartered in Rotterdam. The company stopped operating in early June this year.
According to Dutch media outlet NL Times, Knaken was not listed on the Dutch Authority for the Financial Markets (AFM) register of authorized crypto-asset service providers.
AFM previously said it had started taking supervisory and enforcement action against unauthorized crypto-asset service providers after the Netherlands ended the transition period for the European Union’s Markets in Crypto-Assets regulation, or MiCA, on June 30, 2025.
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