Dutch cryptocurrency platform Knaken has been declared bankrupt by a court in Rotterdam after prosecutors said approximately €7 million ($8.1 million) in customer funds could not be accounted for, leaving tens of thousands of users unable to access their accounts.
The ruling, issued Thursday, also placed Stichting Knaken Payments, the foundation established to safeguard customer deposits, into bankruptcy proceedings. The court said both entities lacked sufficient capital to fully reimburse customers.
The collapse marks one of the Netherlands’ most significant crypto failures in recent years and comes as European regulators tighten oversight of digital asset companies under the European Union’s Markets in Crypto-Assets (MiCA) framework….