Dutch prosecutors sell Knaken’s seized crypto for €2.2M after exchange goes bankrupt

Dutch prosecutors have sold cryptocurrency seized from bankrupt trading platform Knaken for €2.2 million ($2.5 million), leaving the proceeds as the only money currently available in an estate facing customer claims estimated at €10 million to €12 million. Summary Dutch prosecutors sold seized Knaken crypto for €2.2 million to help repay creditors. About 6,300 customers face claims estimated at €10 million to €12 million. The trustee said Knaken may not have held enough crypto to match customer account balances. Knaken owner Ronald J. disputes claims that customer funds broadly went uninvested. Dutch regional broadcaster Rijnmond reported that court-appointed trustee Carl Hamm has contacted about 6,300 former customers and warned them to temper expectations as he works through the failed platform’s finances. The sale follows Knaken’s July bankruptcy, which crypto.news previously reported was ordered by a Rotterdam court on July 16 after the Dutch Public Prosecution Service sought to have the company wound up in the public interest. Prosecutors had alleged that roughly €7 million in customer funds could not be accounted for, while the court found the company did not have enough asse...