The Rotterdam District Court has formally declared Dutch cryptocurrency exchange Knaken bankrupt, confirming a €7 million shortfall in the company's assets.
The ruling, issued on Thursday, marks the final legal step in the collapse of the platform, which had previously been flagged by regulators for irregularities.
For retail investors, the bankruptcy filing means that the recovery of the missing €7 million is now subject to the formal insolvency process.
The insolvency was initiated by the Dutch Public Prosecution Service (OM) in late June, following signals from the Dutch Authority for the Financial Markets (AFM) regarding the platform's financial health.
The court's decision validates the severity of the AFM's concerns, cementing the loss of client funds that were not covered by the company's remaining assets.
For retail investors, the bankruptcy filing means that the recovery of the missing €7 million is now subject to the formal insolvency process.
The shortfall represents a significant hit to user confidence in the Dutch crypto custody landscape, highlighting the risks associated with unsecured digital asset holdings on platforms that lack sufficient capital buffers.