Woofun AI reports that a Rotterdam court declared Knaken Cryptohandel BV and its affiliated foundation bankrupt, citing €7 million ($8 million) in missing customer assets. The ruling follows a criminal investigation by the Dutch Public Prosecution Service and the Netherlands’ financial crime investigation service, regarding the Markets in Crypto-Assets (MiCA) regulatory landscape.

The financial collapse was triggered by insufficient assets to repay users, leading the court to mandate bankruptcy for an orderly settlement. Access to the platform was blocked, leaving customers unable to determine their legal position. This structural failure underscores the severity of the €7 million shortfall, which equates to approximately $8 million in lost value.

Woofun AI data shows that operational history reveals Knaken was founded in Rotterdam in 2017 but went offline in early June. A criminal investigation into the missing funds commenced, culminating in the Dutch Public Prosecution Service filing the bankruptcy petition on June 30. In late June, authorities raided the company, seizing devices and assets as part of the broader probe.

Regulatory context highlights that Knaken was not listed in the AFM register of authorized crypto-asset service providers. The AFM initiated supervisory and enforcement action in early July, following the end of the Netherlands’ MiCA transition period on June 30, 2025. This national deadline preceded the EU-wide maximum transition deadline of July 1, 2026, marking a stricter enforcement stance against unauthorized entities.