The Dutch prosecution has sold the remaining encrypted assets of Knaken, the bankruptcy encryption trading platform, to recover approximately 2.2 million euros. The funds became the first available for distribution to be known to its estate, but there is still a clear gap from the size of the customer's declaration.

2.2 million euros is just the beginning.

The court-appointed bankruptcy trustee Carl Hamm indicated that he had contacted some 6300 customers who had recently held warehouse space in Knaken. According to its estimates, the total amount invested by clients through encrypted warehouse slots, certificates and client loans is about 10 to 12 million euros.

This means that, even without taking into account administrative costs and different claims, the funds available cover only part of them. Hamm has not published the projected settlement rates nor has a distribution schedule been given.

  • Encrypted assets sold: 2.2 million euros
  • Number of clients contacted: approximately 6300
  • Client-related funding estimates: Euro10 million to Euro12 million

The two sides have their lines around the accounts.

Knaken was declared bankrupt by the Rotterdam court on July 16th. Previously, the Dutch prosecution claimed that approximately 7 million euros remained unaccounted for on the platform. The Court ' s summary showed that the company ' s assets were insufficient to reimburse its customers in full and that, following the closure of the platform, the customers were no longer able to continue to access their accounts and balances.

Hamm believes that the customer ' s rights to Knaken are more like claims denominated in euros than direct ownership of encrypted assets in an independent wallet. He also noted that the encrypted assets purchased by Knaken might not be sufficient to cover the entire warehouse space shown in the client ' s account.

Ronald J., the owner of Knaken, denies this whole story. He indicated that the customer orders were executed through the liquid provider and could be verified through the order number, the transaction price and the time stamp. He did not, however, deny the existence of parts of the platform that were not covered, and questioned the estimate of the size of the funding provided by the trustee.

Prosecutions and trustees continue to pursue assets

Shortly before bankruptcy, the Dutch prosecution seized Knaken ' s remaining encrypted assets and subsequently decided to sell them. Hamm supports this approach on the grounds that the price of encrypted assets fluctuates significantly during the duration of the insolvency proceedings and that pre-sale can help preserve existing value.

The court record also mentioned that Knaken had transferred approximately 2.3 million euros to a private company controlled by Ronald J. and that the court allegedly described the transaction as a conflict of interest. The trustee is continuing to verify whether there are other funds, receivables or available assets for sale.

MiCA background is mentioned together.

Knaken stopped regular services after failing to obtain authorization under the EU Regulatory Framework for Encrypted Asset Markets. The Netherlands Financial Markets Authority is responsible for the supervision of local encryption asset service providers, and the national transition period in the Netherlands ended on 30 June 2025.

However, the status of delegation of authority is not the same as the funding gap for clients. The amount of funds that will be recovered by subsequent clients will continue to depend on the verification of claims, the cost of insolvency, the subordination of claims and the continued recovery of additional assets by the trustee.