Knaken Dutch Crypto Exchange Declared Bankrupt Amid Missing €7M

Dutch cryptocurrency platform Knaken has been declared bankrupt after prosecutors alleged that around €7 million in customer funds could not be accounted for. A Rotterdam court said Knaken lacked enough assets to repay customers fully after operations stopped.

The ruling followed a bankruptcy request filed by the Netherlands Public Prosecution Service in late June after regulators raised concerns about the company. According to NL Times, the Dutch Authority for the Financial Markets alerted prosecutors to what it described as a 'very concerning situation' at Knaken.

A criminal investigation is also underway into the alleged missing customer funds. The court said Knaken had a large deficit that users had not been told about.