Dutch prosecutors have filed for Knaken's bankruptcy liquidation, freezing funds belonging to approximately 30,000 users.

According to BlockBeats, on June 30th, the Dutch Public Prosecutor's Office filed a motion with the Rotterdam court to declare the cryptocurrency platform Knaken and its affiliated payment institution, Stichting Knaken Payments, bankrupt, arguing that this action is in the "public interest." Knaken ceased operations in early June, leaving approximately 30,000 users unable to withdraw funds from the platform. The prosecutor stated that the platform did not obtain a license from the Dutch Financial Markets Authority (AFM) as required by the EU's Crypto Asset Markets Regulation (MiCA), and that the liquidation process lacked orderly management. Knaken has stopped making payments to customers and reportedly advised users not to file claims for compensation. Meanwhile, the Dutch Fiscal Information and Investigation Agency (FIOD) has launched a criminal investigation and searched related locations this Monday, seizing laptops, mobile phones, and some company assets. No arrests have been made so far. If the court approves the bankruptcy petition, a court-appointed bankruptcy administrator will take over the company's assets and be responsible for determining the repayment arrangements for customers and other creditors.