Knaken Cryptohandel BV Declared Bankrupt Amid Missing Customer Funds

A Dutch court has declared Knaken Cryptohandel BV and its affiliated foundation bankrupt after the disappearance of 7 million euros in customer assets.

The company's collapse has raised concerns about regulatory oversight, user due diligence, and whether the Dutch framework caught the situation early enough to prevent losses at this scale.

Knaken had been operating without AFM authorization, which means it was in direct violation of the rules since the Netherlands ended its MiCA transition period on June 30, 2025. This deadline triggered enforcement actions against unauthorized platforms, placing Knaken's status in conflict with the stricter regulatory environment.

The court found that Knaken had insufficient assets to fully repay its users and customers lacked sufficient information to determine their own legal position. The Dutch Public Prosecution Service filed a bankruptcy petition on June 30 after opening a criminal investigation into the missing funds, while the Netherlands' financial crime investigation service raided Knaken in late June, seizing devices and assets.