Bankruptcy declared for Dutch crypto exchange Knaken amid €7 million shortfall
Rotterdam's court determined insolvency proceedings were required for orderly resolution after the platform was found to have inadequate resources to compensate its customers in full.
Cryptocurrency exchange Knaken Cryptohandel BV, along with its associated foundation, has been ordered into bankruptcy by a court in the Netherlands following authorities' discovery that customer funds totaling 7 million euros ($8 million) could not be accounted for.
The decision handed down by Rotterdam's court on Thursday stated that insolvency proceedings were essential for achieving an organized resolution following Knaken's decision to suspend user access to both its trading platform and customer accounts.
Based on the court's findings, the organization possesses inadequate resources to provide complete reimbursement to its user base. The judicial body additionally noted that clients did not have adequate information available to assess their legal standing in the matter.
The bankruptcy application was submitted by the Dutch Public Prosecution Service on June 30 following the launch of a criminal probe into the unaccounted-for funds, while Dutch financial crime investigators conducted a raid on the company's premises in late June, confiscating electronic devices and other assets during the operation.
Established in Rotterdam in 2017, Knaken ceased operations in early June, as reported by NL Times. The platform is notably absent from the register maintained by the Dutch Authority for the Financial Markets' (AFM) listing authorized crypto-asset service providers.
In early July, the AFM informed Cointelegraph that it had already commenced supervisory and enforcement measures targeting unauthorized crypto-asset service providers following the Netherlands' conclusion of its Markets in Crypto-Assets (MiCA) regulation transition period on June 30, 2025. The Dutch compliance deadline preceded the EU-wide maximum transition deadline of July 1, 2026.