Dutch prosecutors have sold off the last of the cryptocurrency seized from collapsed trading platform Knaken, raising €2.2 million for a bankruptcy estate that thousands of customers are now watching closely. The Knaken crypto bankruptcy has become a cautionary tale about what happens when a trading platform’s finances unravel faster than regulators or customers can react, and the fresh cash injection is only the beginning of a long and uncertain recovery process.

Key takeaways

• Dutch prosecutors sold Knaken’s remaining cryptocurrency for €2.2 million, giving the bankruptcy estate its first pool of usable funds.
• The Rotterdam court declared Knaken bankrupt on July 16 after prosecutors alleged roughly €7 million was…