A Dutch court has declared bankrupt cryptocurrency platform Knaken CryptoHandel BV and an affiliated foundation after 7 million euros in customer assets went missing.

Cointelegraph reported on Thursday that the Rotterdam court ruled bankruptcy was needed for an orderly settlement because the company had blocked access to its platform and accounts and lacked enough assets to return users' funds in full.

The court also found users did not have enough information to determine their legal status.

The Dutch Public Prosecution Service filed for bankruptcy on June 30 after opening a criminal investigation into the missing funds. The Netherlands’ financial crime investigation agency also raided Knaken in late June, seizing devices and assets.

Knaken, founded in Rotterdam in 2017, has had its online service suspended since early June. The company was also not included on the list of registered and licensed crypto asset service providers maintained by the Netherlands Authority for the Financial Markets.

The Netherlands Authority for the Financial Markets said in early July it had already begun supervisory and enforcement measures against unlicensed crypto asset service providers. The Netherlands ended the MiCA transition period on June 30, 2025.