Knaken Crypto Collapse and Prosecutors' Move | Business and Finance News

Dutch prosecutors cashed in nearly $2.5 million from seized crypto tied to the collapsed Knaken platform, using the proceeds to reimburse victims of the unlicensed crypto service that vanished in June and was declared bankrupt by July. The platform’s flawed model—where users held claims to euro-denominated balances rather than actual coins—left many exposed when Knaken couldn’t back its promises. A lawyer for a victim criticized the sale, likening it to selling your car after a garage goes bust, while prosecutors defended it as necessary given crypto’s volatility. Meanwhile, founder Ronald J. claims he moved $2.7 million for marketing, not personal gain, and disputes claims of mismanaged funds—even as regulators admit they didn’t oversee Knaken’s solvency, focusing instead on anti-money laundering rules. The fallout continues as victims await full restitution. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/60358f27f8a2f3c4