Knaken Crypto Sale Falls Short, Customers Face Steep Losses

Dutch prosecutors have sold cryptocurrency seized from bankrupt trading platform Knaken for €2.2 million, leaving customers facing estimated losses of €10 million to €12 million.

Court-appointed trustee Carl Hamm has contacted approximately 6,300 former customers, warning them that the recovery process will be complicated and likely yield little in terms of repayment.

The sale represents the entirety of funds currently available to creditors, a stark contrast to their estimated claims. Many customers had believed they directly owned the cryptocurrency balances displayed in their accounts, but according to Hamm, these balances were merely claims for euro value.