Dutch Prosecutors Raise $2.5 Million From Sale of Seized Knaken Crypto
Knaken, a Dutch cryptocurrency trading platform, went offline in early June after failing to secure the license required by the Netherlands Authority for the Financial Markets, or AFM. About 30,000 customers were locked out of their accounts, with losses estimated in the tens of millions of dollars. The Dutch Public Prosecution Service sought bankruptcy on June 30, and the Rotterdam District Court declared Knaken insolvent on July 16.
Dutch prosecutors have now sold cryptocurrency seized from Knaken by the Fiscal Information and Investigation Service, or FIOD, raising about $2.5 million, according to an Aug. 17 report. The proceeds are currently the only funds available in the bankruptcy estate and are expected to be used to repay creditors. Lawyers representing affected customers have challenged whether prosecutors had legal authority to sell the holdings, potentially complicating the distribution of the money.
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The history behind this eventDutch Crypto Platform Knaken Declared Bankrupt Over Suspected Loss of Millions
Dutch cryptocurrency trading platform Knaken is suspected of losing a substantial amount of customer assets, highlighting the custody and compliance risks at centralized crypto platforms. The case has undermined investor confidence in small and midsize regional crypto exchanges and drawn intense scrutiny from European financial regulators over virtual-asset safeguards. With the platform restricting customer withdrawals without warning, the security of client assets has again emerged as a critical issue for the healthy development of the cryptocurrency market.
The District Court of Rotterdam formally declared Knaken and its affiliated foundation bankrupt on July 16, 2026. The Dutch Public Prosecution Service had filed for bankruptcy on June 30 after as much as €7 million in customer assets was suspected to have gone missing. The platform is now completely offline, and related assets have been seized. The court has appointed bankruptcy trustees to oversee the settlement process, while the Dutch Fiscal Intelligence and Investigation Service has launched a criminal investigation.
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