Dutch Prosecutors File Bankruptcy Application for Knaken Exchange, 30,000 Users' Funds Frozen

According to BlockBeats, Dutch prosecutors filed a bankruptcy application with the Rotterdam Court on June 30 to wind up the Knaken cryptocurrency platform and its affiliated payment institution Stichting Knaken Payments, citing the action serves the "public interest."

Knaken halted operations in early June, leaving approximately 30,000 users unable to withdraw funds. Prosecutors noted the platform lacked the required license from the Dutch Financial Markets Authority (AFM) under the EU's Markets in Crypto-Assets Regulation (MiCA). The Dutch Tax and Customs Investigation Service (FIOD) has launched a criminal investigation and conducted raids this week. If approved, a court-appointed liquidator will take over assets and determine customer compensation arrangements.