Overview
- Dutch prosecutors sold cryptocurrency seized from Knaken on Monday, generating €2.2 million that the court-appointed trustee says is currently the only cash in the bankruptcy estate.
- Trustee Carl Hamm has contacted about 6,300 customers and estimates total customer exposures at roughly €10 million to €12 million, leaving a multi‑million euro shortfall after bankruptcy costs and creditor ranking.
- A Rotterdam court declared Knaken bankrupt on July 16 after prosecutors said about €7 million was unaccounted for, and prosecutors seized remaining crypto shortly before the filing under rules that allow sale of assets at risk of losing value.
- Knaken owner Ronald J. disputes the trustee’s broader accounting claims and says trades were executed through a liquidity provider, though court records report a €2.3 million transfer to a company he controls that the court flagged as a potential conflict of interest.
- Prosecutors are pursuing a criminal investigation while the trustee verifies claims and hunts for other assets, and customers should expect limited recoveries and slow distributions as forensic reviews and legal processes continue.