A Rotterdam court has declared Dutch cryptocurrency platform Knaken bankrupt, saying the measure is necessary to ensure an orderly settlement because the company does not have sufficient assets to fully repay users.
Bankruptcy Ruling in Rotterdam
The court’s decision places Knaken into formal insolvency proceedings under Dutch law. According to the ruling, bankruptcy was required to manage creditor claims and distribute remaining assets in an organized manner.
Implications for Customers and Creditors
The ruling indicates that users may not be repaid in full. In Dutch bankruptcies, customers typically become unsecured creditors and are repaid, if at all, from whatever assets remain after higher-priority claims are addressed. Account access and withdrawals are usually suspended during this process.
Next Steps in the Insolvency Process
A court-appointed trustee (curator) is expected to oversee Knaken’s asset inventory, review claims, and manage any potential recoveries for creditors. Affected users should monitor official notices for instructions on filing claims and deadlines set by the trustee or court.