Dutch Court Declares Knaken Crypto Platform Bankrupt

Summary

A Dutch court in Rotterdam has declared the cryptocurrency platform Knaken Cryptohandel BV and its affiliated foundation bankrupt following the discovery that approximately 7 million euros (about $8 million) in customer assets are missing. The court ruled that bankruptcy was necessary to ensure an orderly settlement since Knaken blocked user access to its platform and accounts, and the company lacks sufficient assets to fully repay customers. Additionally, the court noted that affected customers did not have enough information to understand their legal position.

The bankruptcy petition was filed by the Dutch Public Prosecution Service on June 30, after it initiated a criminal investigation into the missing funds. In late June, the Netherlands’ financial crime investigation agency raided Knaken’s offices, seizing devices and assets to assist the investigation. Knaken, founded in Rotterdam in 2017, ceased operations and went offline in early June 2023, according to reports.

Why it matters

Notably, Knaken was never listed on the Dutch Authority for the Financial Markets (AFM) register of authorized crypto-asset service providers. The AFM has stated that following the conclusion of the Netherlands’ Markets in Crypto-Assets (MiCA) regulation transition period on June 30, 2025—earlier than the EU-wide deadline—the regulator is taking supervisory and enforcement actions against unauthorized crypto service providers. This action against Knaken highlights regulatory efforts to protect investors and enforce compliance in the Dutch crypto sector.