The Dutch Public Prosecution Service has asked a Rotterdam court to declare crypto platform Knaken Cryptohandel and its affiliated entity Stichting Knaken Payments bankrupt in the public interest, citing concerns over the orderly wind-down of the company. Knaken has been offline since early June, leaving an estimated 30,000 customers unable to access their funds. The platform allowed users to exchange euros for cryptocurrencies like Bitcoin and Ethereum, as well as trade and store digital assets, but failed to obtain a required license from the Dutch Authority for the Financial Markets (AFM) under the EU's MiCA regulations. Prosecutors are using civil powers to seek bankruptcy, which would appoint a trustee to manage assets and decide on customer reimbursements. Concurrently, a criminal investigation by the Fiscal Information and Investigation Service (FIOD) has begun, with property searches and asset seizures conducted on Monday, though no arrests have been made. The case highlights the tightening regulatory environment under MiCA, which expires the transition period for unlicensed platforms serving EU customers on July 1. Knaken previously sponsored Dutch football clubs Ajax, Feyenoord, and Sparta Rotterdam, but these partnerships ended before its collapse. The company's 2024 annual accounts described it as 'financially vulnerable.'

Key facts

• Prosecutors seek bankruptcy of Knaken in public interest, affecting 30,000 customers.
• Platform operated without required EU MiCA license from AFM regulator.
• Criminal investigation by FIOD ongoing; devices and assets seized, no arrests.
• Europe's MiCA transition period ends July 1, forcing unlicensed firms out.
• Knaken's sponsorships with Dutch football clubs ended before collapse.

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