Svmuu News: A court in Rotterdam, the Netherlands, has declared the cryptocurrency trading platform Knaken Cryptohandel BV and its affiliated foundation bankrupt, after prosecutors stated that approximately 7 million euros (about $8 million) in customer assets held by the platform could not be recovered. In its ruling on Thursday, the court stated that since Knaken had suspended platform services and restricted user access to accounts, initiating bankruptcy proceedings would facilitate an orderly liquidation of the company’s assets. The court noted that the company’s current assets are insufficient to fully reimburse users, and that users lack sufficient information to assess their legal rights.
The Dutch Public Prosecutor’s Office filed for bankruptcy on June 30, following a criminal investigation into the missing funds. The Dutch Financial Intelligence and Investigation Service (FIOD) also raided Knaken’s offices in late June and seized relevant equipment and assets.
Knaken, founded in 2017 and headquartered in Rotterdam, ceased operations in early June of this year. According to the Dutch media outlet NL Times, the company does not appear on the Dutch Authority for the Financial Markets (AFM)’s list of authorized crypto-asset service providers.
The AFM previously stated that, following the end of the transition period for the EU’s Markets in Crypto-Assets Regulation (MiCA) on June 30, 2025, it has begun taking regulatory and enforcement actions against unauthorized crypto-asset service providers. (Cointelegraph)