A Dutch court declared cryptocurrency platform Knaken Cryptohandel BV and its affiliated foundation bankrupt on Thursday after prosecutors said 7 million euros ($8 million) in customer assets were missing. The Rotterdam court issued the ruling to ensure an orderly settlement after Knaken blocked access to its platform and accounts. The Dutch Public Prosecution Service filed the bankruptcy petition on June 30 following a criminal investigation into the missing funds, while the Netherlands' financial crime investigation service raided the company in late June and seized devices and assets. The court stated the company has insufficient assets to fully repay users and customers lacked sufficient information to determine their legal position. The bankruptcy follows the Netherlands' enforcement of Markets in Crypto-Assets (MiCA) regulation after ending its transition period on June 30, 2025.
Rotterdam Court Orders Knaken Bankruptcy Over Insufficient Assets
The Rotterdam court issued the bankruptcy ruling on Thursday, stating the declaration was necessary to ensure an orderly settlement process. According to the court, Knaken Cryptohandel BV has insufficient assets to fully repay users. The court also noted that customers lacked sufficient information to determine their legal position regarding their holdings on the platform.
Knaken blocked access to its platform and user accounts before the court ruling. The company went offline in early June, according to NL Times. Founded in Rotterdam in 2017, Knaken does not appear in the Dutch Authority for the Financial Markets' (AFM) register of authorized crypto-asset service providers.
Dutch Authorities Launch Criminal Investigation and Asset Seizures
The Dutch Public Prosecution Service filed the bankruptcy petition on June 30 after opening a criminal investigation into the missing 7 million euros in customer funds. The Netherlands' financial crime investigation service raided the company in late June, seizing devices and assets as part of the ongoing investigation.
The timing of the prosecution's action coincided with the Netherlands' enforcement of MiCA regulation. The AFM told Cointelegraph in early July that it had already begun taking supervisory and enforcement action against unauthorized crypto-asset service providers after the Netherlands ended its MiCA transition period on June 30, 2025.
Knaken Operated Without AFM Authorization Since 2017
Knaken Cryptohandel BV was founded in Rotterdam in 2017 and operated as a cryptocurrency trading platform until going offline in early June. The company does not appear in the AFM's register of authorized crypto-asset service providers, indicating it operated without proper regulatory authorization.
The Dutch deadline for MiCA compliance came before the EU-wide maximum transition deadline of July 1, 2026. The AFM's enforcement actions against unauthorized providers began immediately after the June 30, 2025 transition period ended, targeting platforms like Knaken that failed to obtain required licenses.
FAQ
What did the Rotterdam court rule regarding Knaken on Thursday?
The Rotterdam court declared Knaken Cryptohandel BV and its affiliated foundation bankrupt on Thursday after prosecutors said 7 million euros ($8 million) in customer assets were missing. The court stated the company has insufficient assets to fully repay users and that customers lacked sufficient information to determine their legal position.
Why did Dutch prosecutors file a bankruptcy petition against Knaken?
The Dutch Public Prosecution Service filed the bankruptcy petition on June 30 after opening a criminal investigation into the missing 7 million euros in customer funds. The Netherlands' financial crime investigation service raided the company in late June and seized devices and assets as part of the investigation.
Was Knaken authorized to operate as a crypto platform in the Netherlands?
No. Knaken does not appear in the Dutch Authority for the Financial Markets' (AFM) register of authorized crypto-asset service providers. The AFM began taking supervisory and enforcement action against unauthorized crypto-asset service providers after the Netherlands ended its MiCA transition period on June 30, 2025.
