Knaken Crypto Trading Platform Files for Bankruptcy Amid Missing Customer Funds
Knaken, a Dutch cryptocurrency trading platform, has filed for bankruptcy after allegedly losing €7 million in customer funds. The Rotterdam court declared the company bankrupt on July 16, citing insufficient assets to repay customers.
The trustee, Carl Hamm, has been working with approximately 6,300 customers who invested between €10 million and €12 million into the platform. However, the sale of the seized cryptocurrency generated only €2.2 million for the bankruptcy estate.
Ronald J., the owner of Knaken, disputes the trustee's accounting and claims that every customer order was routed through a liquidity provider. The lack of authorization under the EU's MiCA framework and the platform's failure to meet compliance deadlines also raise questions about the company's legitimacy.