Dutch prosecutors raise $2.5 million by selling seized cryptocurrency from bankrupt platform Knaken.

Odaily Planet Daily reports that the Dutch Public Prosecution Service has sold cryptocurrency seized from the bankrupt Dutch cryptocurrency platform Knaken, raising $2.5 million to repay creditors. Court-appointed bankruptcy administrator Carl Hamm stated that this amount is currently the sole source of funds in the bankruptcy estate. Knaken offered cryptocurrency trading and custody services to Dutch users through an app but did not obtain the licenses required by the country's market regulator. The platform ceased operations in early June, and the Rotterdam court declared it bankrupt on July 16 after the prosecution filed for liquidation on the grounds of public interest. Hamm estimates that clients invested between $12 million and $14 million and has notified approximately 6,300 clients to lower their expectations. A lawyer representing clients questioned the prosecution's right to sell the assets; Knaken founder Ronald J. denied investing any of the funds, stating that the platform, acting as a broker, recorded all orders. (Decrypt)