Dutch Crypto Exchange Knaken Declared Bankrupt, $8M Customer Funds Missing
Rotterdam court declares Knaken bankrupt under EU MiCA rules; prosecutors allege $8 million in customer funds missing.
A Rotterdam court has declared Dutch cryptocurrency exchange Knaken bankrupt, citing non-compliance with the European Union's Markets in Crypto-Assets (MiCA) regulation. The ruling marks one of the first major exchange collapses directly linked to the new framework.
Prosecutors allege that approximately $8 million in customer funds are missing from the exchange's reserves. The investigation is ongoing, and authorities have not yet identified whether the funds were misappropriated or lost due to operational failures.
MiCA, which took effect in phases beginning in 2023, imposes strict licensing, capital, and custody requirements on crypto service providers operating within the EU. Knaken's failure to meet these obligations contributed to its insolvency, according to the court's ruling.
The case underscores the increasing regulatory pressure on crypto exchanges in Europe, where regulators are actively enforcing MiCA standards to protect consumers and ensure market integrity.