Knaken, a crypto broker based in Rotterdam, was declared bankrupt by a Dutch court on June 30, 2026, after operating without the mandatory license required under the EU's MiCA regulations. Approximately $8 million (7 million euros) in customer funds have disappeared, leaving around 30,000 clients locked out of their accounts.
Regulatory Enforcement and Licensing Issues
The Netherlands implemented one of the strictest MiCA licensing deadlines early, requiring compliance by June 30, 2025. Knaken never obtained a license from the Dutch markets regulator, the AFM, forcing the platform offline in June 2026. Dutch prosecutors requested bankruptcy proceedings due to halted payouts and risks to customers.
Knaken operates independently and is not affiliated with the US-based exchange Kraken, despite the similar names. The company had allowed users to buy, sell, and store crypto assets but failed to meet regulatory standards.
Customer Funds and Legal Actions
Although Knaken established a legal entity, Stichting Knaken Payments, to segregate client assets as required by MiCA, investigators found the funds missing. Dutch financial crime investigators, the FIOD, raided Knaken's offices on June 29, seizing computers and assets. No arrests have been made, as the criminal case is separate from the bankruptcy.
Unlike bank deposits, Dutch compensation schemes do not cover cryptocurrencies, leaving recovery dependent on what the appointed trustee can locate. Payouts to customers may take months without guarantees.
MiCA regulation mandates licensed firms to keep client assets segregated and protected from creditors. Similar issues contributed to the collapse of AscendEX earlier this year.
Material is informational and not financial advice.
