Dutch Crypto Platform Knaken Declared Bankrupt with €7 Million in Customer Funds Missing

Dutch cryptocurrency platform Knaken has been declared bankrupt by a Rotterdam court on Thursday, with prosecutors confirming that approximately €7 million ($8.1 million) in customer funds cannot be accounted for. The ruling also placed Stichting Knaken Payments, the foundation established to safeguard customer deposits, into bankruptcy proceedings. Around 30,000 customers have been affected, unable to access their accounts since early June.

The collapse comes as European regulators enforce stricter oversight under the European Union's Markets in Crypto-Assets (MiCA) framework. Knaken failed to secure the required license from Dutch authorities, prompting prosecutors to request the bankruptcy in June. The Fiscal Information and Investigation Service (FIOD) conducted searches at the company's offices in late June, seizing computers and assets as part of a parallel criminal investigation.