FIOD investigates Dutch cryptobroker Knaken

The Dutch crypto broker Knaken is under severe pressure. The Public Prosecution Service (OM) is asking the Rotterdam District Court to declare the company bankrupt due to a highly concerning situation. The financial regulator Autoriteit Financiële Markten (AFM) has flagged serious problems that could affect the platform’s customers.

Knaken stops payouts without a licence

At Knaken, customers could convert their money into cryptocurrencies and vice versa. They could also store their crypto assets there. Such activities require a licence from the AFM, but Knaken does not hold this permit. The company says it has ceased operations and claims to be working on an orderly wind-down. However, signals received by the OM indicate that the platform is no longer paying out its customers.

The reason for the OM’s request is clear: the company provides services without the required licence and leaves customers in the dark. Knaken, meanwhile, says it is not bankrupt and expects to start processing claims on 1 July. The firm is working with the affiliated Stichting Knaken Payments on a solution.

FIOD investigates criminal offences

Alongside the civil bankruptcy proceedings, the FIOD, the investigative service of the Dutch Tax Authority, is looking into possible criminal offences. This investigation follows the alarming situation described by the AFM and a criminal complaint filed by the regulator. On Monday 29 June, investigators conducted several searches and seized digital data carriers. The FIOD also seized company assets. No arrests have been made.

If the court declares Knaken bankrupt, a trustee can use the company’s assets to pay creditors, including customers. The OM and the FIOD are conducting their investigations separately with different teams.

Thousands of customers await clarity

The situation affects many people. An estimated 3,000 to 4,500 individuals have been affected. For them, the Knaken Collectief has been set up, a reporting point where victims can register. The initiative maintains contact with Knaken Cryptohandel B.V. and Stichting Knaken Payments. According to the collective, both parties have indicated they are willing to engage constructively in discussions about a fair and reasonable settlement.