Prosecutors sell remaining crypto from bankrupt trading site Knaken for €2.2 million

The Dutch Public Prosecution Service has sold the remaining cryptocurrency held by the bankrupt crypto platform Knaken, generating 2.2 million euros that will go toward paying creditors, according to the court-appointed trustee.

Rotterdam trustee Carl Hamm, appointed after the company’s collapse, has told about 6,300 customers in a recent message that they should temper expectations of recovering their money. “We have contacted everyone who had a position at Knaken in the recent past,” Hamm said in an interview at his office overlooking the Erasmus Bridge.

Hamm estimates customers invested 10 million to 12 million euros through Knaken. Those affected include not only people who put money into cryptocurrencies but also those who bought Knaken certificates and those who lent money to the company.

What happened to the customers’ funds is under investigation by both the trustee and prosecutors. Customers told local broadcaster Rijnmond they each had their own account and wallet on the Knaken platform that they could monitor through the company’s app. When they transferred money, they could see in real time how much crypto it represented and its value. The platform also offered a digital vault for savings.