The Rotterdam District Court has declared Netherlands-based crypto exchange Knaken Cryptohandel B.V. bankrupt, leaving customers facing millions of euros in losses. The ruling follows a request by the Dutch Public Prosecution Service in late June, after the Dutch Authority for the Financial Markets (AFM) flagged a “very concerning situation” at the platform.
Prosecutors allege that around €7 million in customer funds cannot be accounted for, and a criminal investigation is now underway. The court noted a large deficit that users had not been told about, stating: “A large amount of customer money has disappeared without it being clear how this could have happened.”
Knaken, which went offline in early June, opposed the bankruptcy and proposed distributing seized assets directly to users. However, the court rejected that plan, finding that the exchange lacked sufficient assets to repay customers in full.
The collapse coincides with the full enforcement of the EU’s Markets in Crypto-Assets (MiCA) framework. The transition period ended on July 1, 2026, and firms without a license or valid notification from an EU regulator had to wind down covered services. Knaken was not listed among authorized crypto service providers at the time of its failure. By late June, the EU had granted 244 MiCA licenses, while licensed operators such as Coinbase and Ripple expanded across Europe.
Knaken has addressed the bankruptcy on a dedicated FAQ page, and a court-appointed trustee will now manage the insolvency process. Customers and creditors are advised to await official updates regarding claims and potential recovery of funds.
