Dutch Prosecutors Apply for Knaken Bankruptcy Liquidation, Freezing Funds of Approximately 30,000 Users

BlockBeats News, June 30th, the Dutch Public Prosecution Service has applied to the Rotterdam court to declare the cryptocurrency platform Knaken and its affiliated payment institution Stichting Knaken Payments bankrupt, stating that this is in the "public interest."

Knaken has ceased its operations since early June, and about 30,000 users are unable to withdraw funds from the platform. The prosecution stated that the platform did not have the Dutch Financial Markets Authority (AFM) license required by the EU's Markets in Crypto-Assets Regulation (MiCA), and the liquidation process lacked orderly management. It has stopped making payments to customers and reportedly advised users not to file compensation claims.

Meanwhile, the Fiscal Information and Investigation Service (FIOD) of the Netherlands has launched a criminal investigation and conducted searches at relevant locations on Monday, seizing laptops, mobile phones, and some company assets. No arrests have been made at this time. If the court approves the bankruptcy application, a court-appointed bankruptcy trustee will take over the company's assets and be responsible for determining the fund repayment arrangement for customers and other creditors.