Dutch prosecutors have petitioned a Rotterdam court to force the liquidation of Knaken, an unlicensed cryptocurrency exchange that has locked approximately 30,000 customers out of their funds.
The filing marks an escalation in enforcement against the platform, which has left users unable to access or withdraw their crypto assets. Prosecutors did not disclose a timeline for the court's decision or specify what triggered the liquidation request at this stage of the regulatory action.
Knaken operated without the required license from Dutch financial regulators, a violation that created legal exposure for both the platform and its users. The absence of licensing typically means customers have no regulatory safety net or compensation scheme if the platform fails.
The case reflects the Netherlands' willingness to pursue formal insolvency proceedings against unlicensed operators rather than negotiate settlements or permit orderly wind-downs. Whether the court grants the liquidation petition will determine how Knaken's remaining assets are distributed, if any remain, and whether the frozen customer accounts can be unfrozen during bankruptcy proceedings.
The outcome will take months at minimum. Dutch insolvency courts move deliberately, and disputes over asset classification, customer claims priorities, and potential fraud allegations typically extend timelines further.