Dutch Crypto Exchange Knaken Declared Bankrupt Amid $7.6 Million Customer Shortfall

A Dutch court has declared Knaken Cryptohandel B.V., a crypto exchange based in Rotterdam, bankrupt following a petition from the Public Prosecution Service. The ruling exposes a roughly $7.6 million shortfall in customer funds, with customers now holding uncertain legal claims against the company's assets.

The bankruptcy order was issued by the Rotterdam District Court after a prosecutor-led insolvency process, which concluded that Knaken could no longer meet its obligations to clients. This is a significant development for the European crypto sector, particularly as the EU's MiCA framework tightens custody and disclosure rules.

For customers, this means a freeze on withdrawals and the start of a court-supervised claims procedure. The real value of their claims will depend on what a trustee can identify, secure, and liquidate, which is typically a lengthy process.