Knaken Bankruptcy Leaves 30,000 Users, €7 Million Missing

The exchange suspended operations during late May and early June while its website and mobile application became unavailable. Knaken customers immediately lost access to accounts and cryptocurrency holdings stored through the platform. Users then relied on limited company updates while waiting for official action.

Company representatives argued bankruptcy was not the most suitable method for ending operations. They proposed distributing available funds among customers through an alternative process. The court determined available assets remained insufficient for full creditor repayment.

Authorities estimate about 30,000 users were affected after Knaken stopped providing access to its services. Dutch prosecutors sought bankruptcy measures designed to protect customer interests during the unfolding case. Investigators expanded inquiries into the company’s financial position and operational records.

European cryptocurrency rules required exchanges to obtain authorization under the Markets in Crypto-Assets framework before continuing operations. Knaken failed to secure the necessary license and disappeared from the national regulatory register. The regulatory change coincided with mounting operational difficulties before services stopped.

The Fiscal Information and Investigation Service searched company premises during the investigation. Officers seized computers, mobile phones, and other assets while collecting evidence. Knaken remains subject to those investigative actions as authorities continue reviewing company records.