Dutch prosecutors have sold the remaining cryptocurrency recovered from failed crypto platform Knaken for €2.2 million.
The proceeds are expected to be used in the bankruptcy process and ultimately toward claims from creditors.
Knaken's downfall
As reported by U.Today, Knaken’s downfall became public in early June 2026.
Customers were locked out of their accounts and could no longer access their balances.
The shutdown came after Knaken failed to obtain the regulatory authorization required to continue serving Dutch customers under the European Union’s new crypto rules.
The company had argued that it was preparing an orderly wind-down, but prosecutors became concerned that customers were not being paid.
The Dutch Authority for the Financial Markets (AFM) alerted prosecutors, and the latter opened a criminal investigation.
The financial-crime investigation service FIOD searched premises linked to Knaken, seized electronic devices and took control of assets.
By late June, prosecutors had gone to court seeking to have the company declared bankrupt, arguing that approximately €7 million in customer funds were missing.
On June 30, prosecutors formally submitted the bankruptcy petition. The Rotterdam District Court approved it on July 16.
It said there was a substantial deficit in customer funds. The court concluded that the situation required bankruptcy proceedings.
Knaken has argued that the company could wind down without court intervention. Its available assets could instead be distributed directly among customers. The court has determined that Knaken did not have enough assets to repay customers in full.
The collapse has affected a large customer base. Earlier estimates put the number of Knaken customers at around 30,000.
Knaken's rise makes its collapse particularly striking. Founded in Rotterdam in 2017, the company expanded alongside the Dutch crypto market and became a visible brand through football sponsorships. It was associated with clubs including Feyenoord, Sparta, Heracles and Heerenveen and also had a brief relationship with Ajax. Knaken's sponsorship strategy helped present the company as an established and trustworthy business to mainstream Dutch consumers, even as serious financial problems were developing behind the scenes.
The aforementioned €2.2 million is only a fraction of the customer balances believed to be affected. The trustee and Dutch authorities are continuing to investigate.
U.Today Editorial Team
Dan Burgin
