Dutch bitcoin mining farm Koinz Trading declared bankrupt

Bitcoin Keychains
A pile of keychains emblazoned with the logo for cryptocurrency Bitcoin. August 26, 2013.photo: BTC Keychain

Dutch company Koinz Trading was declared bankrupt by the court of Amsterdam on Wednesday. The company, which offered customers access bitcoin mining machines and cryptocurrency investments, is facing dozens of customers demanding compensation for damages, the Telegraaf reports. 

Customers never received access to the mining machines they invested in, and therefore also not the Bitcoins they could've mined, according to the newspaper. Lawyer Marco Kalmijn told the Telegraaf that around 60 customers are trying to recover "many millions" from Koinz Trading.

Koinz Trading named itself the first Dutch bitcoin factory. The company buys and sells bitcoins and offers access to professional bitcoin mining machines with which private individuals can mine the popular cryptocurrency, according to the newspaper. The machines were placed at the companies combined farm in Lelystad, where they would mine bitcoins 24/7. Individuals invested amounts from 3 thousand euros each in these Miners S9. 

Up until September last year, a number of investors made some of their investment back, but after then nothing, according to the newspaper. According to lawyer Kalmijn, dozens of customers in the Netherlands filed fraud charges against Koinz Trading. A number of Belgians are also seeking help from lawyers.