A Dutch court has declared cryptocurrency platform Knaken bankrupt after prosecutors claimed approximately €7 million in customer funds had disappeared, marking the latest setback for the former Ajax and Feyenoord sponsor.
The Dutch Public Prosecution Service (OM) has also opened a criminal investigation into possible wrongdoing at the company.
The bankruptcy filing followed the sudden shutdown of Knaken’s website and mobile app, which left roughly 30,000 customers unable to access their accounts. The court ruled that the company did not have enough assets to fully reimburse customers and cited concerns that account access had been cut off while the firm’s website discouraged users from pursuing claims.
Knaken, founded in 2017, had struggled to meet new European crypto licensing requirements while facing financial difficulties in recent years. Although customer funds were supposed to be protected through a separate entity, Knaken Payments, payouts never began.
Authorities have since raided the company and frozen part of its assets as part of an ongoing investigation.
