Dutch crypto exchange Knaken files for bankruptcy after €7 million customer funds disappear

A Rotterdam court declared the Dutch cryptocurrency exchange Knaken bankrupt after prosecutors determined that roughly €7 million (about $8 million) of customer funds were missing. The missing money involved more than 30,000 users who were locked out of the platform and could not view their balances.

Prosecutors and the Dutch Authority for the Financial Markets had flagged suspicious activity, leading to a raid on Knaken’s premises and the seizure of assets. The exchange had previously promised that client funds would be held in a separate foundation, but that structure never disbursed any money. Judges ruled that bankruptcy was the best option to protect the public interest, noting the exchange lacked sufficient assets to satisfy all creditors.

Customers are expected to recover only a fraction of their deposits, and the case highlights ongoing regulatory scrutiny of crypto platforms in the Netherlands.