Key Takeaways
- • Dutch public prosecutors have petitioned for cryptocurrency broker Knaken to be declared bankrupt to protect approximately 30,000 customers locked out of their funds since the platform went offline in early June 2026.
- • Knaken ceased operations after failing to obtain mandatory licensing from the Dutch financial regulator AFM required under new EU cryptocurrency rules implemented in July 2025, with some customers holding tens of thousands of euros on the platform.
- • The regulator AFM had previously issued warnings about "a very worrying situation" at the firm; prosecutors express concerns that the company's stated "careful" wind-down is not proceeding properly and that customer payouts have halted entirely.
- • Financial crime investigators (FIOD) have launched a criminal investigation into potential offences at Knaken, conducting premises searches on Monday, seizing digital devices, and freezing company assets; no arrests have been made to date.
- • A court-appointed bankruptcy administrator would be tasked with recovering remaining assets and attempting to repay creditors and customers from whatever funds can be recovered.
Summary
Dutch public prosecutors have formally requested that cryptocurrency broker Knaken be declared bankrupt, marking an escalation in efforts to address the platform's abrupt shutdown that has left tens of thousands of customers unable to access their funds. The move comes roughly one month after Knaken went offline in early June 2026, stranding approximately 30,000 customers with locked cryptocurrency holdings and euro deposits on the platform.
Knaken operated as a cryptocurrency broker allowing Dutch customers to convert euros into digital assets including Bitcoin and Ethereum, with the platform serving as custodian for customer holdings. The company ceased trading operations after failing to secure the required AFM (Autoriteit Financiële Markten) license mandated under new EU regulatory rules that took effect in July 2025. The financial markets regulator had previously issued public warnings describing "a very worrying situation" at the firm prior to its shutdown.
While Knaken indicated it was executing a "careful" wind-down process, prosecutors expressed serious concern that this process is not progressing appropriately and that the company has stopped making customer payouts altogether. The prosecutors' bankruptcy petition represents an effort to trigger formal court intervention that would establish a court-appointed administrator with authority to investigate remaining company assets and coordinate repayment efforts to creditors and affected customers. Some individual investors reported holding tens of thousands of euros in holdings on the platform at the time of the shutdown.
Concurrently, investigators from FIOD (the Dutch financial crime investigation unit) have opened a criminal investigation into potential criminal offences at Knaken. This investigation was prompted by AFM's regulatory concerns and a formal complaint from the regulator. On Monday, FIOD officers conducted premises searches, seized digital devices, and froze company assets as part of the criminal inquiry. The investigation remains ongoing with no arrests reported as of the filing date. The court has not yet ruled on the prosecutors' bankruptcy petition.
Knaken operated as a cryptocurrency broker allowing Dutch customers to convert euros into digital assets including Bitcoin and Ethereum, with the platform serving as custodian for customer holdings. The company ceased trading operations after failing to secure the required AFM (Autoriteit Financiële Markten) license mandated under new EU regulatory rules that took effect in July 2025. The financial markets regulator had previously issued public warnings describing "a very worrying situation" at the firm prior to its shutdown.
While Knaken indicated it was executing a "careful" wind-down process, prosecutors expressed serious concern that this process is not progressing appropriately and that the company has stopped making customer payouts altogether. The prosecutors' bankruptcy petition represents an effort to trigger formal court intervention that would establish a court-appointed administrator with authority to investigate remaining company assets and coordinate repayment efforts to creditors and affected customers. Some individual investors reported holding tens of thousands of euros in holdings on the platform at the time of the shutdown.
Concurrently, investigators from FIOD (the Dutch financial crime investigation unit) have opened a criminal investigation into potential criminal offences at Knaken. This investigation was prompted by AFM's regulatory concerns and a formal complaint from the regulator. On Monday, FIOD officers conducted premises searches, seized digital devices, and froze company assets as part of the criminal inquiry. The investigation remains ongoing with no arrests reported as of the filing date. The court has not yet ruled on the prosecutors' bankruptcy petition.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.