Dutch prosecutors sold Knaken's remaining cryptocurrency for €2.2 million, creating the bankruptcy estate's first known pool of funds for creditor claims. According to reports from crypto.news and Rijnmond, court appointed trustee Carl Hamm told regional broadcaster Rijnmond that the proceeds were currently the estate's only available money. Hamm contacted approximately 6,300 customers who had held positions on Knaken in the recent past, warning that recoveries could remain limited for creditors. The sale follows Knaken's July bankruptcy, which was ordered by a Rotterdam court on July 16 after the Dutch Public Prosecution Service sought to have the company wound up in the public interest.
Hamm's estimate places the total amount invested through cryptocurrency positions, certificates and customer loans between €10 million and €12 million. As reported by crypto.news and Rijnmond, the €2.2 million generated from the asset sale would cover only part of that estimate before bankruptcy costs and treatment of different creditor classes. The trustee explained how customer positions were structured, stating that a person depositing €100 to buy Bitcoin would pay Knaken a €1 fee, after which the company would buy a €99 position through an exchange. According to Hamm, the resulting crypto position belonged legally to Knaken, while the customer held a claim for its euro value, with many customers believing displayed cryptocurrency balances represented coins they directly owned.
A Rotterdam court declared Knaken bankrupt on July 16 after prosecutors alleged €7 million remained unaccounted for. According to crypto.news and Rijnmond, the official court summary stated the company lacked enough assets to repay customers fully. The court also found that customers could no longer access their accounts or balances after Knaken blocked access to its trading platform. Knaken had already stopped operating in early June, cutting customers off from the app through which they had bought, traded and stored cryptocurrency. Prosecutors filed the bankruptcy request on June 30 in the public interest because customers lacked enough information to assess their legal positions.
Hamm said customers appeared to hold claims against Knaken for euro values rather than direct ownership of cryptocurrency stored in individual wallets. As reported by crypto.news and Rijnmond, he also alleged that Knaken did not purchase enough crypto to cover all positions shown in customer accounts. However, Knaken owner Ronald J. rejected the broader allegation, stating that each customer order was executed through a liquidity provider and could be checked using an order identification number, execution price and timestamp. Ronald J. called the claim that customer money had broadly gone uninvested "outright incorrect and damaging" and said he did not recognize Hamm's estimate of €10 million to €12 million in investments, though he acknowledged that part of the customer exposure was not covered.
Customers can continue submitting claims to Hamm with account statements and supporting evidence. According to crypto.news and Rijnmond, the trustee must verify those claims, determine their legal ranking and search for additional assets before making distributions. Hamm is also reviewing whether Knaken's directors complied with their duties, while prosecutors have not announced charges or set a deadline for completing the criminal investigation. Ronald J. said he still wants to propose a settlement to creditors, though any proposal would need to fit within the court supervised bankruptcy process. The prosecution service's decision to liquidate the seized cryptocurrency has also drawn objections from customers questioning whether the assets should have been sold before ownership issues were resolved.
