Dutch prosecutors have liquidated cryptocurrency seized from failed trading platform Knaken for €2.2 million, leaving the bankruptcy estate with its only confirmed cash against customer claims that trustee Carl Hamm estimates at €10 million to €12 million. Hamm has contacted about 6,300 former customers and warned recoveries are likely to be limited once bankruptcy costs, creditor ranking and verified claims are taken into account. The Rotterdam court ordered Knaken's bankruptcy on July 16 after prosecutors sought to wind the company up in the public interest, having argued that roughly €7 million in customer funds could not be accounted for and that assets were insufficient to repay users in full. Hamm says customers generally held euro-denominated claims on Knaken rather than direct ownership of coins because the platform bought positions in its own name, while Ronald J. says Knaken acted as a broker whose orders were recorded through a liquidity provider and disputes the trustee's estimate, though he has acknowledged some exposure was uncovered. The collapse also underscores regulatory gaps after Knaken stopped operating in early June without the authorization needed to continue covered crypto services in the Netherlands once the MiCA transition ended.