The Dutch Public Prosecutor’s Office has filed a request with the Rotterdam Court to declare bankruptcy for Stichting Knaken Payments, linked to the cryptocurrency platform Knaken Cryptohandel. The prosecutor stated that this action was taken in the public interest. Since early June, the platform has been offline, leaving nearly 30,000 customers unable to access their assets.
Missing license and unresolved customer payments come to the fore
Knaken had allowed users to buy, sell, and store cryptocurrencies such as Bitcoin and Ethereum in exchange for euros. However, such activities in the Netherlands require a license from the Netherlands Authority for the Financial Markets (AFM), according to European Union crypto asset regulations. The prosecutor noted that Knaken never obtained this mandatory license. The AFM serves as the official regulatory body overseeing the Dutch financial markets.
The Dutch Public Prosecutor’s Office expressed “serious concerns” over irregularities in the liquidation process, stating its bankruptcy request to the court was based on public interest considerations.
Although the company has announced it was suspending operations and entering a wind-down phase, the prosecutor stated that no payments have been made to customers. Officials also reported that some users were even advised against submitting compensation claims. Should the court grant the bankruptcy request, a court-appointed administrator will take over Knaken’s assets and determine the extent to which funds can be returned to customers and other creditors.
The prosecutor emphasized that the administrator will have full control over the management of this process, with the authorities not directly involved in any repayment plan. This positions the case as a crucial step for both the protection of customer assets and oversight of the liquidation proceedings.
Separate criminal investigation underway with office raids
In parallel with the bankruptcy filing, the Dutch Fiscal Information and Investigation Service (FIOD) has launched a separate criminal investigation. This followed warnings and formal complaints from the AFM. On Monday, authorities conducted searches at several locations, seizing laptops, phones, and company assets as part of the operation.
So far, officials have stated that there have been no arrests. The prosecution clarified that the bankruptcy process and the criminal probe are being handled by independent teams to ensure there is no overlap between the two investigations.
If the court issues a bankruptcy ruling, the appointed administrator will examine Knaken’s holdings and decide what amounts, if any, can be reimbursed to customers and other claimants.
Pressure mounts as MiCA transition deadline nears in Europe
This case coincides with the end of the transition period for the Markets in Crypto Assets (MiCA) regulation in the European Union. The grace period, which allowed platforms to operate under outdated national rules, expires on July 1. After this date, platforms lacking the necessary authorization will no longer be able to legally serve EU customers.
The Netherlands had already ended its own transition period a year earlier, making the Knaken saga a striking example of intensifying scrutiny on unlicensed platforms. Notably, Knaken had previously engaged in sponsorships with prominent Dutch football clubs like Ajax, Feyenoord, and Sparta Rotterdam, but these partnerships were reportedly concluded prior to the company’s collapse.
