Dutch Prosecutors Apply for Bankruptcy Liquidation of Crypto Platform Knaken to Protect Funds of About 30,000 Clients

CoinFeed July 1 news, according to Decrypt reports, the Dutch Public Prosecution Service has applied to the Rotterdam court to declare bankruptcy for the crypto platform Knaken and its affiliated entity Stichting Knaken Payments, stating this is in the 'public interest.' Knaken has been suspended since early June, with about 30,000 clients unable to access their crypto assets. The platform offers exchange, trading, and storage services for euros and cryptocurrencies like Bitcoin and Ethereum, but it never obtained the MiCA license required by the Netherlands Authority for the Financial Markets. The company claims it is gradually closing down operations, but the prosecution believes the process lacks order. The prosecution has also launched a criminal investigation, searching the company's premises on Monday and seizing equipment and assets, with no arrests made yet. The case coincides with the end of the EU MiCA transitional period on July 1, meaning unauthorized platforms will no longer be able to legally serve EU clients.