Dutch prosecutors have sold the remaining seized crypto assets of the Knaken trading platform for €2.2 million. The sale marks a crucial stage in the platform’s bankruptcy process, leaving the auction proceeds as the only funds available to pay creditor claims. The Rotterdam Court had previously declared Knaken bankrupt on July 16, 2026, after prosecutors alleged that €7 million in funds was missing from the company’s books.
Total customer investments through crypto instruments, certificates, and loans are estimated to range between €10 million and €12 million.
The €2.2 million in the hands of prosecutors guarantees one thing: the loss gap cannot be fully covered.
Why Balances Are Incomplete
Seeing the wide gap in claims, court-appointed trustee Carl Hamm had to deliver bad news. He has contacted approximately 6,300 people who held positions on the exchange, warning them not to expect their funds to be returned in full. The platform’s collapse came to light when the operators abruptly halted operations after blocking customer access to their accounts and balances.
Hamm’s initial investigation revealed operational practices that triggered a sharp deficit. Hamm suspects that Knaken customers actually only held euro-denominated claims, rather than directly owning crypto assets in individual wallets. He accused the platform of failing to purchase equivalent crypto assets to back all the positions recorded in customer accounts.
Court documents also highlight suspicious cash outflows. There are records of a €2.3 million transfer from the platform’s funds to a private company owned by Ronald J., the owner of Knaken. The court described this move as a conflict of interest. Meanwhile, the company attributed part of its financial troubles to the theft of 23 bitcoins back in 2020 - an incident valued at only about €140,000 at the time.
Hampered by EU Regulations
The platform’s financial downfall accompanied its legal failure. Knaken failed to obtain operational authorization under the European Union’s Markets in Crypto-Assets (MiCA) framework. Their room for maneuver was restricted after the Dutch government ended the national transition period for crypto companies on June 30, 2025.
To date, prosecutors have not announced charges or named any suspects regarding the disappearance of these millions of euros. Ronald J. has also denied the trustee’s allegations, claiming that every customer order was executed through a liquidity provider.
For the 6,300 customers locked out of the system, the MiCA licensing failure is no longer their concern. Their money is trapped in a system that has proven to leave a multi-million deficit, their asset ownership is claimed to be merely euro values, and the remaining €2.2 million in the hands of prosecutors is their last line of defense before they resign themselves to facing losses.
Sourced from crypto.news.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
