A Rotterdam court has declared Dutch cryptocurrency platform Knaken bankrupt after prosecutors alleged that around €7 million in customer funds could not be accounted for. The ruling followed a bankruptcy request filed by the Netherlands Public Prosecution Service in late June after regulators raised concerns about the company. According to the court, a large amount of customer money has disappeared without it being clear how this could have happened.
Background
The Dutch Authority for the Financial Markets alerted prosecutors to a “very concerning situation” at Knaken, leading to a criminal investigation into the alleged missing customer funds. The platform had already gone offline in early June, leaving customers unable to access their accounts through its website.
Regulatory Context
The bankruptcy arrives shortly after the European Union completed its transition to the Markets in Crypto-Assets framework, which requires crypto service providers to obtain authorization from an EU regulator to continue offering covered services. Knaken was not listed among the firms authorized under the new MiCA system at the time of its collapse.
Aftermath
The court-appointed process will determine how much money and crypto can be recovered for creditors and customers. Prosecutors continue investigating the alleged €7 million shortfall, while the available public information does not yet explain where the missing funds went. The wider market has been moving quickly toward licensed providers, with companies like Coinbase and Ripple expanding across Europe, increasing the divide between regulated operators and companies unable to meet the new licensing requirements.
Based on reporting from crypto.news.
