Dutch prosecutors have sold cryptocurrency seized from bankrupt crypto platform Knaken and raised $2.5 million to repay creditors. According to Foresight News, court-appointed trustee Carl Hamm said user deposits are estimated at between $12 million and $14 million, and the sale proceeds are now the only funds in the bankruptcy estate.

Knaken had offered crypto trading and storage services to Dutch users without the required license and went offline in early June. The Rotterdam court declared the company bankrupt on July 16. Hamm said that for every 100 euros a user spent to buy bitcoin, Knaken charged a 1 euro fee and used 99 euros to open a position on an exchange, with that position belonging to Knaken itself. User accounts showed crypto amounts, but the actual claim was for the corresponding euro value, and Knaken apparently did not hold crypto matching user balances. A lawyer for one affected user questioned whether prosecutors had the authority to sell the assets, while prosecutors said they relied on provisions allowing the sale of seized items that may lose value.