Dutch Exchange Knaken Enters Bankruptcy After Millions Go Missing

The Rotterdam District Court declared Knaken bankrupt on July 16, stripping the exchange of control over its own operations. This decision follows a public prosecution request after it became clear the platform could not repay its users. A trustee, C.F.W.A. Hamm, has now been appointed to manage the wind down and investigate the company's records.

Prosecutors reported that approximately seven million euros are missing from customer accounts. The exchange previously attempted to suggest its own plan for paying back users, but the court rejected this proposal. The new bankruptcy process is designed to independently verify what assets remain and determine how much of their holdings customers might realistically recover.

This case highlights the risks of using platforms that lack proper regulatory standing. The exchange was operating without the required authorization from the Dutch Authority for the Financial Markets. While the company used a foundation structure to hold client funds, this did not prevent a massive deficit or ensure that customer assets were properly segregated from the firm's own liabilities.

Investigators from the FIOD have already conducted searches at the company offices and seized data to examine potential criminal activity. For now, the trustee must reconcile the exchange's private ledgers with real wallet balances to see what is left. Customers remain in limbo while the court determines the order of priority for claims.