The Rotterdam District Court placed Dutch crypto exchange Knaken and its payments foundation into bankruptcy on July 16. Judges determined the platform cannot repay customers in full amid a reported €7 million shortfall in balances. A trustee has taken control to manage the wind-down process.
The court found that customers were locked out of accounts and that a substantial coverage deficit had not been disclosed earlier. Prosecutors informed the court that about €7 million was missing from customer balances.
Trustee C.F.W.A. Hamm now oversees both Knaken Cryptohandel B.V. and Stichting Knaken Payments. The appointment replaces any internal payout plan proposed by the exchange.
Knaken had argued that bankruptcy was unnecessary due to existing criminal asset seizures and its custody structure. The court rejected that position in favor of independent oversight.
The Dutch Public Prosecution Service noted that the Fiscal Intelligence and Investigation Service carried out searches on June 29. No arrests had been made at the time of the June 30 statement.
