A Rotterdam court has ruled that Dutch crypto platform Knaken Cryptohandel B.V. and its affiliated entity, Stichting Knaken Payments, are bankrupt. The July 16 decision came after the Dutch Public Prosecution Service filed a petition on June 30 citing approximately €7 million ($8.1 million) in customer funds that simply aren’t where they’re supposed to be.

Around 30,000 users have been locked out of their accounts since the platform went dark in early June. Criminal investigations are ongoing, and no recovery details have been released.

Knaken was founded in 2017 by Ronald Jonkers and a partner, and the platform grew to roughly 45 employees and positioned itself as a mainstream service for buying, selling, and holding digital currencies like Bitcoin and Ethereum. It even sponsored Dutch football clubs Feyenoord and Ajax.

How the wheels came off

Knaken had previously registered with De Nederlandsche Bank (DNB) for anti-money laundering compliance, which was the bare minimum under the old Dutch framework. But when the EU’s Markets in Crypto-Assets (MiCA) regulation kicked in, requiring full authorization from the Autoriteit Financiële Markten (AFM), Knaken couldn’t clear the higher bar.

Without the MiCA license, the platform had no legal basis to continue operating as a crypto trading venue in the Netherlands. It ceased operations in early June 2026, and that’s when the real problems surfaced.

Customer assets were supposed to be held within the Stichting Knaken Payments foundation, a separate legal entity specifically designed to ring-fence client money from the company’s own finances. Prosecutors discovered an undisclosed financial deficit within that very foundation.

MiCA’s first real stress test

The Dutch case exposes a gap in the transition process. A platform can hold a legacy AML registration, appear compliant to customers, and still lack the full licensing needed to operate under the new regime. For everyday users, the distinction between “registered” and “fully licensed” is almost invisible until it’s too late.

The AFM and Dutch prosecutors have not released a detailed accounting of where the missing €7 million went or whether recovery is possible.

What this means for crypto investors in Europe

For investors, the practical takeaway is straightforward: verify that your platform holds an actual MiCA authorization, not just a legacy registration from a prior regulatory regime. A DNB anti-money laundering registration, which is what Knaken had, is not the same thing as a full AFM license under MiCA. The difference is the difference between a platform that has been vetted for capital adequacy, governance, and asset segregation, and one that has merely checked a box on anti-money laundering procedures.

Criminal investigations are still underway, and the appointed bankruptcy trustees have not yet outlined a timeline for potential asset recovery. The 30,000 affected Knaken users are likely in for a long wait.