Web3: Dutch Prosecutors Sell Knaken Crypto Assets, Recover €2.2 Million

CoinWorld reports:

Dutch prosecutors have sold the remaining crypto assets recovered from the collapsed platform Knaken, cashing in approximately €2.2 million. This amount will enter the bankruptcy proceedings for subsequent creditor repayments, but it remains limited compared to the scale of funds affected customers had.

Platform Halted in June

Knaken's issues became public in early June 2026. Customers were subsequently unable to log into their accounts or withdraw their balances. The platform failed to obtain the regulatory licenses required to continue providing services to Dutch customers and ceased operations following the implementation of a new round of crypto regulations in the EU.

The company claimed at the time that it was preparing for an orderly exit from the market. However, prosecutors were concerned that customers would not receive their payouts. The Dutch Authority for the Financial Markets (AFM) subsequently issued a warning to prosecutors, prompting a criminal investigation.

Court Approves Bankruptcy Application

The Dutch Financial Intelligence and Investigation Service (FIOD) conducted searches at locations associated with Knaken, seizing electronic devices and taking over some assets. By the end of June, prosecutors applied to the court to declare the company bankrupt, stating that there was a shortfall of approximately €7 million in customer funds.

• On June 30, prosecutors formally submitted the bankruptcy application.
• On July 16, the Rotterdam District Court approved the application.
• Prosecutors then sold the crypto assets, recovering approximately €2.2 million.

The court stated that there was a clear shortfall in customer funds, and the case needed to be handled through bankruptcy proceedings. Knaken had claimed that court intervention was unnecessary and that it could directly allocate existing assets to customers, but the court determined that its assets were insufficient to fully repay customers.

About 30,000 Customers Affected

Early estimates indicated that Knaken had around 30,000 customers. The company was founded in Rotterdam in 2017 and gained visibility through football sponsorships, collaborating with clubs such as Feyenoord, Sparta, Heracles, and Heerenveen, and briefly engaging with Ajax.

These sponsorships helped establish its brand image in the mass market, but the €2.2 million recovered so far represents only a small fraction of the affected customers' balances. The bankruptcy administrator and relevant Dutch authorities continue to investigate the whereabouts of the assets and the shortfall in funds.

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