Proceeds from seized cryptocurrency will partially repay creditors of the bankrupt Dutch crypto platform Knaken.
Dutch prosecutors have sold $2.5 million (€2.2 million) worth of cryptocurrency seized from the collapsed Knaken platform. The funds will be used to repay creditors, though the bankruptcy estate currently holds no other assets, according to court-appointed trustee Carl Hamm.
Knaken, which operated without a required license, went bankrupt in July after customers deposited an estimated $12 million to $14 million (€10 million to €12 million). Hamm noted that customer balances did not reflect direct ownership of crypto, as funds were commingled with operational costs.
Affected customers, numbering around 6,300, have been advised to lower recovery expectations. Legal questions remain over whether prosecutors should have sold the assets before clarifying ownership rights.