Rotterdam Court Declares Crypto Exchange Knaken Bankrupt

The bankruptcy petition was filed by the Netherlands Public Prosecution Service in late June, acting on urgent warnings from the Dutch Authority for the Financial Markets. Prior to the court's decision, the exchange had already ceased operations, leaving users locked out of their accounts since early June. The court rejected the company's attempt to avoid liquidation, concluding that Knaken lacked the necessary assets to satisfy its outstanding obligations to customers.

This collapse coincides with the full implementation of the European Union’s Markets in Crypto-Assets (MiCA) framework. With the July 1, 2026, deadline for compliance now passed, the regulatory environment has tightened significantly for crypto service providers operating within the bloc. Knaken was not among the 244 firms that secured authorization under the new regime, highlighting a deepening divide in the European market between regulated entities and those failing to meet strict licensing mandates. A court-appointed liquidator will now oversee the recovery process, though the whereabouts of the missing capital remain a focal point of the ongoing criminal inquiry.