Dutch Crypto Platform Knaken Declared Bankrupt Over Missing Funds — Here's What That Means for Users

WHY IT MATTERS

When you put money on a crypto platform, you're essentially trusting that company to hold your assets safely — similar to depositing money in a bank. But unlike traditional banks, many crypto platforms don't have the same level of government-backed insurance or strict regulations. When a court declares a platform 'bankrupt over missing funds,' it means the company can't account for the money users deposited. Think of it like a storage facility telling you they lost your belongings and don't have the money to pay you back. This is why crypto experts often say 'not your keys, not your coins' — meaning if you don't hold your crypto in your own personal wallet, you're taking a risk that the platform holding it could lose it or misuse it.