Public prosecutors have asked that cryptocurrency broker Knaken be declared bankrupt, a step they say is meant to protect tens of thousands of customers who have been locked out of their money since the company went offline at the start of June.
The financial markets regulator AFM had issued warnings about what it called “a very worrying situation” at the firm.
Knaken let customers convert euros into cryptocurrencies such as Bitcoin and Ethereum, and store them on the platform. It stopped trading at the start of June after failing to obtain the necessary AFM licence that crypto firms serving Dutch customers have needed since July 2025 under new EU rules.
The company said it was working on a “careful” wind-down, but prosecutors said they were “very concerned” this was not happening properly and that Knaken had stopped paying customers out. The OM estimates the broker has around 30,000 customers.
When Knaken abruptly took its app offline, the number of people affected was not known. Some investors held tens of thousands of euros on the platform.
A bankruptcy would let a court-appointed administrator take over and try to repay creditors, including customers, from whatever assets are left. The court has yet to rule on the request.
Criminal investigation
Investigators from financial crime firm FIOD are also looking into possible offences, prompted by the AFM’s concerns and a complaint from the regulator. Officers searched several premises on Monday, seizing digital devices and freezing the company’s assets. No one has yet been arrested.
Knaken said on its website that it was not bankrupt and expected to start carrying out its settlement plan before July 1, “with legal guidance and in line with the applicable obligations”.
Knaken is known in the Netherlands as a former sponsor of football clubs including Feyenoord and Ajax.
