Knaken cryptocurrency sale leaves creditors with massive shortfall

Dutch prosecutors have sold the remaining cryptocurrency seized from the failed trading platform Knaken for €2.2 million. The sale was conducted to prevent potential losses from market price fluctuations.

Despite the sale, creditors face significant shortfalls. The court-appointed trustee, Carl Hamm, reported that approximately 6,300 customers had invested or loaned between €10 million and €12 million through the platform. With claims already totaling €8.4 million, the trustee expects a final deficit of approximately €7 million to €7.5 million after bankruptcy costs and creditor distributions.

Knaken was declared bankrupt by a Rotterdam court on July 16 following allegations that millions in funds were unaccounted for. While Knaken’s management disputes certain accounting claims, they have acknowledged that some customer positions lacked sufficient coverage. Prosecutors are currently conducting a criminal investigation into the platform's finances.