Proceeds from the sale of seized cryptocurrency assets mark the sole funds available for Knaken’s creditors amid a $12M-$14M shortfall.
Dutch prosecutors sold cryptocurrency seized from collapsed platform Knaken, raising $2.5 million (€2.2 million) for creditors. The funds represent the only available assets in the bankruptcy estate, according to court-appointed trustee Carl Hamm.
Knaken’s customers deposited an estimated $12 million to $14 million (€10 million to €12 million) before the platform went offline in June. A Rotterdam court declared it bankrupt on July 16 after prosecutors pushed for liquidation. Hamm warned 6,300 customers to lower recovery expectations, citing structural gaps in asset ownership.
A lawyer for an affected customer has challenged the prosecutors’ authority to sell the holdings. Knaken operated without a required Dutch license, complicating the bankruptcy process.