The Dutch prosecution has sold the remaining encrypted assets recovered from Knaken's failed encryption platform, with a cash envelope of approximately 2.2 million euros. The funds will be subject to insolvency proceedings for settlement of subsequent claims, but remain limited in relation to the size of the funds of the affected clients.

The platform stopped in June.

Knaken's problem became public in early June 2026. The client was subsequently unable to log in or withdraw the balance. The platform failed to obtain the regulatory authorization needed to continue to provide services to Dutch clients and ceased operations after a new set of European Union encryption rules landed.

The company stated at the time that it was preparing to exit the market in an orderly manner. However, the prosecution is concerned that the client has not been paid. The Netherlands Financial Markets Authority AFM subsequently issued a warning to the prosecution, on the basis of which the prosecution initiated a criminal investigation.

The court granted the bankruptcy application.

The Dutch Financial Crime Investigation Agency FIOD searched the premises associated with Knaken, seized electronic equipment and took over part of the assets. By the end of June, the prosecution had applied to the court to declare the company bankrupt, claiming that there was a shortfall of approximately Euro7 million in customer funds.

  • On 30 June, the prosecution filed a formal bankruptcy application
  • 16 July, Rotterdam District Court granted the application
  • The prosecution then sold encrypted assets and recovered approximately 2.2 million euros.

The court stated that there was a clear gap in the funds of the client and that cases needed to be addressed through insolvency proceedings. Knaken had argued that existing assets could be distributed directly to the client without court intervention, but the court had found that its assets were insufficient to pay the customer in full.

About 30,000 clients affected

Early estimates indicate that Knaken has about 30,000 clients. Founded in Rotterdam in 2017, it has expanded its visibility through football sponsorship, worked with clubs such as Fayenoord, Sparta, Hercules and Heerenveen, and has had brief contacts with Ajax.

These grants have helped to create a brand image for the public market, but the current recovery of 2.2 million euros represents only a fraction of the balance of affected clients. The insolvency representative and the Netherlands authorities continue to investigate the whereabouts of assets and the funding gap.