A Rotterdam court has declared Dutch crypto platform Knaken bankrupt after prosecutors flagged €7 million in missing customer funds. The ruling affects roughly 30,000 users, many of whom now face an uncertain path to recovering their money. The case marks one of the larger crypto platform failures in the Netherlands this year.
The €7 million gap
Prosecutors first raised the alarm over the missing funds, prompting the court to step in. Exactly how the money went missing — whether through mismanagement, theft, or a combination — hasn't been spelled out in the court's public ruling. What's clear is that the shortfall is significant relative to the platform's user base. Knaken had been operating as a licensed crypto service provider under Dutch anti-money laundering rules, but that didn't prevent the hole from forming.
Impact on 30,000 users
For the roughly 30,000 people who held funds or crypto on Knaken, the bankruptcy means their assets are now tied up in insolvency proceedings. Some may get a portion back, but the missing €7 million suggests a substantial haircut is likely. Users who had pending withdrawals or open orders are stuck waiting for the trustee to sort through the books. The timing isn't great — crypto markets have been volatile this month, and locked-up funds can't be moved or traded.
What happens next
A bankruptcy trustee will now take control of Knaken's remaining assets and begin the claims process. Users will need to file their claims with the court, likely within a set deadline. The trustee will also work with prosecutors to trace the missing funds. Whether any criminal charges follow remains an open question. For now, the 30,000 users are left watching their inboxes for official notices from the Rotterdam court.
