Dutch Prosecutors Liquidate Knaken Crypto Assets for €2.2 Million

Court-appointed trustee Carl Hamm is currently working to reconcile the platform’s finances, though he has warned former customers to manage their expectations. The sale follows a July 16 Rotterdam court order that forced the company into bankruptcy after prosecutors alleged that roughly €7 million in customer funds remained unaccounted for. While the platform stopped operating in June, the legal status of the seized assets remains contentious; some creditors argue the authorities sold user property before ownership rights were fully established.

Hamm noted that Knaken’s internal structure often misled users, as many believed their digital balances represented direct ownership of coins. In reality, the company operated as a broker, and Hamm suspects the platform failed to maintain sufficient reserves to cover all displayed holdings. Knaken owner Ronald J. disputes these findings, characterizing the claims of uninvested funds as damaging and incorrect, while acknowledging that some customer exposure remained uncovered. The bankruptcy investigation also revealed that Ronald J. transferred €2.3 million to a separate company for marketing purposes, a move currently under scrutiny for potential conflicts of interest. As the liquidation process continues, the company’s history of financial instability—including a 2020 hack involving 23 BTC—further complicates efforts to recover assets for the thousands of affected investors.