Knaken Bankruptcy Leaves Creditors Facing Steep Losses

Trustee Carl Hamm, appointed to oversee the collapse, has reached out to approximately 6,300 affected customers, warning that full recovery remains unlikely. The firm was declared bankrupt by a Rotterdam court on July 16 after authorities alleged that €7 million in assets remained unaccounted for. These findings emerged after the exchange blocked user access to accounts, prompting prosecutors to intervene in the public interest.

Accounting remains a point of contention between the estate and the firm's owner, identified as Ronald J. While the trustee alleges that the exchange failed to maintain sufficient crypto reserves to back user positions, the owner disputes these claims, asserting that customer orders were fulfilled through external liquidity providers. Beyond the asset shortfall, investigators are examining a €2.3 million transfer from the company to a private entity controlled by Ronald J., which court documents have flagged as a potential conflict of interest.

The liquidation was executed under Article 117 of the Dutch Code of Criminal Procedure, which permits the sale of seized property to prevent value loss during insolvency proceedings. The company’s downfall followed its failure to secure authorization under the European Union’s Markets in Crypto Assets (MiCA) framework, which became mandatory in the Netherlands in mid-2025. As the criminal investigation into the platform’s management continues, the trustee is currently vetting creditor claims and searching for additional assets to bolster the estate's limited funds.