Knaken creditors face losses after €2.2M crypto sale

Dutch prosecutors sold the remaining cryptocurrency seized from failed trading platform Knaken for €2.2 million, giving its bankruptcy estate its first known pool of funds for creditor claims. Summary Dutch prosecutors sold Knaken’s remaining cryptocurrency for €2.2 million, creating the bankruptcy estate’s current funds. Trustee Carl Hamm contacted approximately 6,300 customers and warned recoveries could remain limited for creditors. Customers invested an estimated €10 million to €12 million, according to the court appointed trustee. Rotterdam’s court declared Knaken bankrupt July 16 after prosecutors alleged €7 million remained unaccounted for. Knaken’s owner disputes the trustee’s accounting claims but acknowledges part of customer positions lacked coverage. Court appointed trustee Carl Hamm told regional broadcaster Rijnmond that the proceeds were currently the estate’s only available money. He warned that thousands of customers should limit their expectations of recovering their full balances. The sale followed Knaken’s bankruptcy on July 16. Prosecutors are conducting a criminal investigation into possible offenses connected with the platform’s finances, while Hamm is separa...