Dutch Court Declares Knaken Crypto Exchange Bankrupt Over €7 Million Customer Fund Shortfall

Knaken Crypto Exchange has filed for bankruptcy after being declared insolvent by the Rotterdam Court due to an enormous shortfall of customer funds.

The court found that about €7 million worth of customers' funds were missing, with prosecutors discovering a lack of client funds in late June but not informing clients of the problem.

Knaken argued against bankruptcy, suggesting that the firm should wind up its affairs in an orderly manner and distribute remaining resources among customers. However, the court dismissed these arguments, citing insufficient assets to satisfy all creditors.