The Rotterdam District Court recently declared Dutch cryptocurrency platform Knaken Cryptohandel B.V. and its associated foundation, Stichting Knaken Payments, bankrupt. The ruling, issued on Thursday, July 16, 2026, follows a petition by the Dutch Public Prosecution Service (Openbaar Ministerie - OM) and comes after approximately €7 million in customer funds were reported missing from the platform.

Court's Decision and Missing Funds

The court determined that bankruptcy was necessary to ensure an orderly settlement for Knaken's estimated 30,000 customers. The platform was found to have insufficient assets to fully repay users, and customers lacked adequate information to ascertain their legal standing. The court's decision highlighted a significant deficit in funds, with a large amount of customer money having disappeared without clear explanation. Mr. C.F.W.A. Hamm has been appointed as the bankruptcy trustee (curator) to oversee the liquidation process and manage the distribution of remaining assets.

Regulatory Scrutiny and Criminal Investigation

The Public Prosecution Service filed the bankruptcy petition on June 30, 2026, after receiving signals from the Dutch Authority for the Financial Markets (AFM) about a "very concerning situation" at Knaken. This action was part of a broader criminal investigation into the missing funds. In late June, the Dutch Fiscal Information and Investigation Service (FIOD) raided Knaken's offices, seizing devices and assets as part of their inquiry into potential criminal offenses. Knaken, which was founded in 2017, was not registered with the AFM as an authorized crypto-asset service provider, a requirement under new European rules, including the Markets in Crypto-Assets (MiCA) regulation.

Company Background

Knaken Cryptohandel B.V. was established in Rotterdam in 2017, offering services for converting fiat currency into cryptocurrencies and vice versa, as well as crypto storage. The platform abruptly went offline in early June 2026, blocking customer access to accounts and balances. Prior to its operational halt, Knaken had even advised customers against filing damage claims, arguing that bankruptcy was not the optimal path for winding down the company. However, the court ultimately sided with the Public Prosecution Service, emphasizing the public interest in an independent and orderly settlement.

What to Watch

The immediate focus will be on the work of the appointed curator, Mr. C.F.W.A. Hamm, who is now responsible for assessing Knaken's assets and liabilities, and determining how funds will be repaid to customers and other creditors. The ongoing criminal investigation by the FIOD will continue to seek answers regarding the disappearance of the €7 million in customer funds and whether any criminal offenses were committed. This case underscores the increasing regulatory scrutiny on crypto platforms, particularly concerning customer asset segregation and compliance with evolving frameworks like MiCA, as authorities aim to protect consumers in the rapidly developing digital asset space.

Original announcement: Emerce