The Dutch Public Prosecution Service (OM) has formally petitioned the Rotterdam District Court to declare the cryptocurrency platform Knaken bankrupt.
The legal filing represents a decisive step in the resolution of the exchange's collapse, moving the case from operational suspension to formal insolvency proceedings.
Knaken, a Rotterdam-based trading firm, was forced to halt all business activities earlier this month after failing to secure the necessary regulatory license to operate.
The platform's inability to comply with Dutch financial regulations triggered the shutdown, leaving the company unable to process withdrawals or manage client assets.
The bankruptcy request places thousands of customers in a state of heightened uncertainty regarding the status of their digital asset holdings.
With the platform's operations ceased, retail investors now face a protracted legal process to determine the extent of their potential losses and the likelihood of asset recovery.