Dutch Prosecutors Sell $2.5M of Crypto From Bankrupt Platform Knaken
Dutch prosecutors sold cryptocurrency seized from bankrupt crypto platform Knaken, raising about $2.5 million to help pay creditors. Knaken had let Dutch customers buy, trade, and store crypto through an app without the required license, then went offline in early June and was declared bankrupt in July. Court-appointed trustee Carl Hamm said customers likely deposited $10 million to $12 million, but the estate now contains only the sale proceeds. Hamm said many users misunderstood what they held: their balances represented a euro-linked claim, while the underlying crypto position belonged to Knaken, which appears not to have kept matching assets separate. A lawyer for one customer questioned whether prosecutors were entitled to sell the seized coins. Prosecutors said they had reasons but declined to elaborate. Knaken’s trouble began after a 2020 hack that stole 23 BTC. The company later kept operating, including sports sponsorships, while its founder denied wrongdoing and disputed claims that customer funds were left uninvested.
