BitMart si najal Alvarez & Marsal jako finančního poradce, aby prověřil finanční situaci, omezení výběrů prostředků a možné další kroky po zastavení obchodování. Burza slíbila plán a podrobnosti o konzultacích do tří týdnů.
BitMart appointed Alvarez & Marsal as its financial adviser on Sept. 9 as the crypto exchange reviews its financial position, withdrawal restrictions and possible paths following the suspension of trading.
Summary
BitMart appointed A&M to assess finances, stakeholder claims and withdrawal arrangements with its legal advisers. Five business days is BitMart’s deadline to publish a dedicated user feedback portal online publicly. BitMart expects to announce its action plan and consultation details within three weeks of Wednesday. BitMart halted trading on August 26 after announcing an orderly platform wind-down in July 2026. No audited asset balance, creditor recovery rate or withdrawal timetable accompanied the advisory appointment announcement. The exchange said A&M would work alongside its legal advisers to assess its finances, stakeholder matters and arrangements for an “orderly withdrawal” process. BitMart also said it would examine a potential phased business restart and proposals from unidentified third parties.
The appointment does not reverse BitMart’s trading halt or provide users with a confirmed repayment schedule. The exchange has not published independently verified asset and liability figures, customer shortfall estimates or expected recovery rates.
BitMart gives itself three weeks to produce an action plan BitMart said it would progressively announce its proposed action plan, user consultation process and feedback mechanisms during the next three weeks. That timetable points to further information by approximately the end of September, although the company did not provide a specific date.
Update on the Appointment of Alvarez & Marsal as Financial Adviser and Near-Term Action Plan
Dear BitMart Users,
Following careful consideration, BitMart has appointed Alvarez & Marsal ("A&M") as its external financial adviser. A&M will assist BitMart and its legal advisers in…
— BitMart (@BitMartExchange) September 9, 2026 The exchange plans to establish a dedicated website through which users can submit opinions about withdrawals and BitMart’s future direction. It promised to publish the link within five business days of the Sept. 9 announcement.
A&M will review BitMart’s current operations and asset position before the exchange releases related financial information. BitMart said independent review was needed to ensure that future disclosures were accurate.
However, the announcement did not specify what records A&M would examine, whether its findings would be published in full or whether users would receive an independently audited balance sheet. A search of A&M’s public website did not identify a separate statement confirming the engagement at the time of reporting.
Withdrawal arrangements remain unresolved BitMart acknowledged that users had faced withdrawal restrictions and resulting uncertainty. It said withdrawal arrangements, asset status and future procedures were among the matters now being reviewed.
The exchange did not say how many users remain unable to withdraw, which assets are affected or how much customer property is awaiting release. It also did not provide a date for clearing pending withdrawal requests.
BitMart said it would appoint another independent third party to oversee operations and asset custody during the review. The company did not identify that party or explain its authority over wallets, private keys and transaction approvals.
This leaves several central questions unanswered. Users still lack verified figures showing BitMart’s available assets against customer liabilities. No court-supervised restructuring, bankruptcy petition or regulator-led creditor process has been announced publicly.
Claims on social media that assets are missing or that every withdrawal has failed remain unverified. BitMart’s own acknowledgement of withdrawal restrictions confirms an operational problem, but it does not establish the size or cause of any potential shortfall.
BitMart had already halted trading during its wind-down BitMart announced an orderly wind-down on July 26, citing its operating conditions, market environment and future strategy. The original notice scheduled the end of spot, futures and other trading services for Aug. 26.
The exchange initially planned to complete the wider platform closure by Jan. 31, 2027. It encouraged users to close positions, complete identity checks and submit withdrawals as early as possible.
BitMart later began considering a restructuring that could combine creditor distributions with a phased restart. It appointed White & Case as restructuring counsel and promised an update by Sept. 9.
As crypto.news previously reported, the exchange was evaluating creditor distributions and a phased operational restart without disclosing reserve figures, creditor eligibility rules or payout percentages. The A&M appointment satisfies the promised update but does not answer those financial questions.
The company’s support pages and main website remain online. Some promotional product pages also remain visible, but their presence does not establish that centralized trading services have resumed.
A business restart remains only one possible outcome BitMart said it would explore “various feasible follow-up actions.” Those options include a possible orderly restart and third-party proposals, but the exchange did not identify potential investors, buyers or financing providers.
The company also did not commit to reopening. Any restart would depend on the financial review, available assets, legal advice and negotiations with affected stakeholders.
User feedback may influence the assessment, according to BitMart. However, the feedback portal is a consultation channel rather than a formal creditor vote or legally binding claims process.
The next confirmed deadline is the publication of that portal within five business days. Users should then expect additional action-plan details within three weeks. The most consequential disclosures will be independently verified asset and liability figures, the status of pending withdrawals and the identity of the proposed custody supervisor.
Until those disclosures appear, BitMart’s financial condition and users’ expected recoveries remain unknown.
Echo Base zřídila ad hoc výbor věřitelů BitMart a tvrdí, že její návrh na restrukturalizaci až za 10 milionů USD zůstal bez odpovědi. BitMart má 9. září 2026 zveřejnit další plán.
Echo Base formed an ad hoc committee of BitMart claimholders on Sept. 2, following the crypto exchange’s decision to wind down its operations.
Summary
Echo Base formed an ad hoc committee representing BitMart customers with assets frozen after shutdown. Echo Base says BitMart never answered its proposed $10 million restructuring commitment submitted August 6. The committee retained two law firms and is assessing bankruptcy, regulatory and other recovery options. No court has determined whether customers retain ownership rights over assets held through BitMart accounts. BitMart appointed restructuring counsel and promised users a detailed roadmap by September 9, 2026 publicly. In a statement shared directly with crypto.news, Echo Base said the committee represents a “significant and growing aggregate balance” of frozen customer assets. It did not disclose the number of participating claimholders or the value of their claims.
The special situations firm said the group retained Young Conaway Stargatt & Taylor and Ashbury Legal. The committee is considering restructuring, regulatory and insolvency remedies.
Echo Base says its $10 million offer went unanswered Echo Base said it submitted a written proposal to BitMart management on Aug. 6. The proposal offered up to $10 million to sponsor a pre-negotiated bankruptcy filing.
According to the statement, the money would cover professional and administrative expenses through confirmation of a restructuring plan. Echo Base said BitMart did not respond. Crypto.news could not independently verify the communications between the companies.
Echo Base also described a dispute involving one of its affiliates. It said the affiliate requested a withdrawal on July 24, approximately 31 hours before BitMart announced its closure.
The affiliate allegedly made 15 attempts to contact the exchange before delivering a formal demand on Aug. 8. Echo Base said BitMart neither executed the withdrawal nor identified a contractual or legal reason for withholding the assets. BitMart has not publicly addressed that specific account.
BitMart is considering a different restructuring plan BitMart announced its orderly wind-down on July 26. It suspended new registrations, deposits and new orders before ending trading services on Aug. 26.
The exchange initially said it planned to cease platform operations on Jan. 31, 2027. Withdrawals would remain available, although BitMart warned that compliance reviews and heavy demand could delay processing.
As crypto.news previously reported, BitMart’s shutdown sent BMX down more than 60% within 24 hours. BitMart attributed the closure to its operating conditions, the market environment and its future strategy.
However, BitMart changed course on Aug. 21. In an official update, the company said it was developing a possible restructuring plan as an alternative to a full wind-down.
That plan “may include” phased business resumptions and creditor distributions, BitMart said. The exchange appointed White & Case as restructuring counsel and promised another update by Sept. 9.
Claimholders are considering court proceedings Echo Base said the committee is studying whether qualifying creditors could commence or join an involuntary insolvency proceeding. The firm stressed that no decision had been made.
An involuntary U.S. bankruptcy petition must meet statutory requirements governing creditor eligibility, claim amounts and disputed debts. A court would ultimately decide whether any petition could proceed. The committee is an independently organized group, not a statutory creditors’ committee appointed within an existing bankruptcy case.
Echo Base also argues that BitMart’s user agreement does not transfer ownership of deposited assets to the exchange. That remains the committee’s legal position rather than a court ruling. The treatment of customer crypto would depend on the relevant contracts, entities, jurisdictions and any eventual proceeding.
“BitMart still has time to run an orderly wind-down. What it does not have is anyone willing to put capital behind one. Out of court there is no stay, so a single claimant can stall the process for everyone, and any holder the company cannot reach retains its claim indefinitely. That is not a wind-down, it is an open liability with a queue attached.” said Echo Base’s chief executive Roshan Dharia.
Dharia added that Echo Base had offered “capital at risk” to support a court-supervised process. He said the proposal had remained outstanding since Aug. 6.
The Sept. 9 roadmap is the next deadline BitMart’s promised Sept. 9 update should clarify whether it will pursue a partial reopening, creditor distributions or its original closure schedule. The exchange has not publicly accepted Echo Base’s proposal.
Echo Base said it remains willing to negotiate with BitMart and its advisers. Until an agreement or court filing emerges, the committee’s recovery options remain under review and the status of individual frozen withdrawals may differ.
Crypto exchange BitMart is considering a restructuring that could combine distributions to creditors with a phased restart of some operations, less than four weeks after saying it would shut down, CoinDesk reported.
The proposed plan “The potential plan may include the phased resumption of certain operations in an orderly manner alongside distributions to creditors,” BitMart said in an announcement. The exchange has hired White & Case as restructuring counsel and expects to provide a detailed roadmap by Sept. 9. The reference to creditors marks a change in tone from its July 26 closure notice, which cited only operating conditions, the market environment and future strategy, without giving a specific reason for the shutdown.
Background to the shutdown After nine years in operation, BitMart halted new registrations, deposits and trading orders and moved futures accounts into reduce-only mode. It set Aug. 26 as the deadline for all trading to end and planned to terminate platform operations on Jan. 31, 2027, while keeping withdrawals available under additional compliance checks. The shutdown announcement sent its BMX token down about 58% over 24 hours, extending its year-to-date decline to 83%.
What comes next Details of which operations might restart and how creditor distributions would work have not been disclosed, and the phased resumption remains a proposal rather than a confirmed plan. The roadmap expected by Sept. 9 should clarify the path forward for users with funds still on the platform, including how and when distributions might be made. Until then, withdrawals continue under the compliance checks BitMart put in place when it announced the closure.
What users should watch For customers still holding assets on the exchange, the key dates remain Aug. 26, when all trading is due to end, and Jan. 31, 2027, when platform operations are scheduled to terminate. The appointment of White & Case and the explicit reference to creditor distributions suggest the exchange is now planning a formal wind-down rather than an abrupt closure, though nothing is guaranteed until the roadmap lands. BitMart has not said which products could return or how customer balances would be prioritized in any distribution.
For readers assessing platform risk, our practical look at how to evaluate an exchange’s safety offers useful context.
AUTHOR
Jide Idowu is a skilled freelance writer with expertise in blockchain technology, cryptocurrency, and digital finance. Known for his ability to break down complex topics into clear, engaging content, Jide crafts articles, blog posts, and analyses that resonate with both beginners and seasoned professionals. His work spans a wide range of subjects, from emerging crypto trends to in-depth explorations of blockchain innovations. With a keen eye for detail and a passion for educating readers, Jide is a reliable voice in the rapidly evolving world of digital assets.
22 August 2026 | 22:58 BitMart’s shutdown notice framed closure as a strategic response to difficult conditions. Four weeks later, its restructuring update places creditor distributions beside a possible return to business.
What changed since BitMart’s shutdown notice Then: BitMart described an orderly exit. Now: It is considering an alternative wind-down. New element: Distributions to unnamed creditor groups. Next date: A restructuring roadmap by September 9. The shutdown now has a claims question BitMart’s July announcement pointed to market and operating conditions, as well as the company’s future strategy. It read as a decision to leave an increasingly difficult exchange business.
The latest notice changes the frame. BitMart says it is working on a potential restructuring plan “as an alternative to a full wind-down,” which could pair selected operations with distributions to creditors.
That language introduces a financial question absent from the original announcement. When BitMart said it was closing, the focus was on services, deadlines and withdrawals. Its new update puts potential claims against the exchange at the centre of the next phase.
Keeping a business alive is not the same as restoring an exchange BitMart has not promised to restore the platform in its previous form. Its wording is limited to the phased resumption of “certain operations” in an orderly manner.
That distinction matters. A restructuring can preserve selected parts of a business without reopening every product, market or customer function. The notice does not identify which operations are under review, and it does not say that spot trading, futures, deposits or new registrations would return.
The story, therefore, is not that BitMart has reversed its shutdown. The exchange is testing whether part of the business can continue while a separate process addresses the claims created by the planned exit.
White & Case puts recovery before growth BitMart has hired White & Case as restructuring counsel to work alongside its other advisers. The firm will help evaluate the available options and develop a framework for any business resumption, according to BitMart’s official August 21 update.
The appointment does not reveal the size of any claims or establish how creditors would be treated. It does make clear that BitMart is dealing with more than product decisions. Any restart has to fit alongside a legal and financial plan for distributions.
BitMart has not named the creditor groups, the amount of any obligations, the source of funds for distributions or the process through which claims would be assessed. It would be wrong to assume that “creditors” refers only to users with balances on the platform.
Three answers stand between BitMart and a restart First, the roadmap needs to identify who has claims and how those claims would be handled. That is the difference between a broad reference to creditor distributions and a workable restructuring plan.
Second, BitMart needs to name the services it believes can resume. An exchange cannot regain trust through a vague promise of operations returning “in phases.” Users need to know what comes back, what stays restricted and what happens to existing accounts.
Third, the company needs to explain whether its original shutdown timetable still applies. BitMart’s latest notice sets September 9 as the date for a further update, but it does not state whether the earlier operational deadlines will change.
September 9 will show which story BitMart is telling A full wind-down has one direction: closure. BitMart’s new approach raises a harder possibility—preserving enough of the business to restart while organising distributions to the parties with claims against it.
The upcoming roadmap will show whether that is a genuine restructuring plan or simply a more controlled version of the shutdown already announced. Until then, “creditors” matters more than “resumption.”
Author
Kosta has reported on cryptocurrency markets and blockchain infrastructure since 2020, bringing over six years of hands-on experience in the crypto industry built through daily tracking of markets, trends, and emerging blockchain developments. Specializing in Bitcoin on-chain analysis, institutional ETF flows, and digital asset price action, his work at Coindoo has been cited by other news agencies and consistently covers market developments with a focus on data-driven reporting across Bitcoin, Ethereum, Solana, and XRP. Over the years, Kosta has contributed to multiple crypto media outlets in different regions, authoring over 6,000 articles across the sector. His reporting spans cryptocurrency markets and the broader fintech industry, tracking not only price action but also the technological and regulatory forces shaping the ecosystem. To support his analysis, Kosta actively leverages on-chain data and metrics from leading platforms such as Santiment, Glassnode, and CryptoQuant, enabling deeper, evidence-based market insights. He believes in the power of transparency and the data that underpins the blockchain ecosystem. His academic background in Marketing Management from Denmark further complements his analytical approach, adding a strong understanding of communication strategy and content positioning to his work.
Zakladatel BitMart Sheldon Lee tvrdí, že napadený účet šířil falešná tvrzení o zmrazených fondech. Uživatelé ale dál žádají zveřejnění peněženek, aktiv a závazků.
The pressure on BitMart is shifting from a narrow social media dispute to a test of how centralized exchanges handle demands for basic financial disclosure.
At the center of the disagreement is a Chinese-language X account that, according to the original report, made claims about blocked funds and unpaid employees. BitMart founder Sheldon Lee responded by saying the account was hacked. Users, however, are not satisfied with that explanation. They are asking the exchange to disclose wallets, assets, and liabilities.
The difference between those two positions is significant. A hacked account can explain why a particular claim spread online. It cannot, on its own, show whether customer funds are unencumbered or whether the exchange is solvent.
What the hacked-account response leaves unanswered Lee’s statement appears aimed at stopping the spread of information rather than answering the substantive demand. That is a familiar pattern in centralized exchange disputes: address the messenger, not the message. The problem is that the message here is not a single accusation. It is a request for information that would make the exchange’s position verifiable.
If BitMart disclosed wallet addresses and a liability breakdown, the market could check whether the platform holds enough to cover customer balances. Until that happens, the exchange is asking users to trust its word while leaving the actual ledger closed.
Proof of reserves has a blind spot After the collapse of FTX, many exchanges rushed to publish proof-of-reserves or third-party attestations. But proof of reserves is typically only one side of the balance sheet. It can confirm that assets exist in certain wallets, yet it often says little about liabilities, the use of customer funds, or whether those assets can be accessed when users withdraw.
That blind spot is particularly relevant for BitMart, which has operated across multiple jurisdictions and maintained a broad retail user base. For traders, the practical question is not whether a social account was compromised, but whether their balances are fully backed and redeemable on demand.
The exchange has not publicly committed to publishing a full asset and liability reconciliation. That leaves users reliant on the same kind of partial information that has caused problems at other venues in previous cycles.
Information asymmetry is the real risk Centralized exchanges hold customer funds and control the data about those funds. Users can see their own balances, but they cannot see how the exchange manages them. That imbalance becomes acute when rumors or withdrawals start. Even if a rumor is false, the absence of clear disclosure can make it harder for an exchange to restore confidence.
In this case, the source of the claims may be compromised, but the demand for disclosure is separate. BitMart could address the underlying issue by publishing verifiable wallet addresses and a liability snapshot. The market has seen repeated examples where platforms resisted that step until liquidity problems became unmanageable.
The wider market context The regulatory environment adds another layer. In Washington, the banking sector is trying to reshape a major crypto market bill just days before a Senate vote, a fight covered in BlockchainReporter’s reporting on the Senate fight. That legislative process could eventually create clearer standards for how platforms report reserves and customer assets, but it offers no immediate remedy for BitMart users.
At the same time, institutional crypto markets continue to move toward tokenized real-world assets and live settlement, as tracked in the latest tokenization roundup. That institutional progress does not automatically translate into better custody disclosure at retail-facing exchanges.
Network-level activity also remains strong. Ethereum, BNB Chain, and Polygon still lead developer activity, according to BlockchainReporter’s developer activity ranking. But active developer ecosystems do not protect users from centralized custody risks.
For BitMart, the unresolved question is simple: can users verify what the exchange holds and what it owes? Until the company publishes that information, a hacked-account explanation will not close the trust gap.
AUTHOR
Tokoni Uti is a Lagos-based writer with several years of experience. Her work has appeared in the Huffington Post, the Los Angeles Free Press and the San Diego Free press among others. She is a graduate of Bowen University.
Šéf BitMart Sheldon Lee označil obvinění za vykonstruovaná, zatímco uživatelé dál hlásí zmrazené výběry a chybějící výplaty zaměstnanců. Burza po červencovém orderly wind-down obchodní platformy dosud nezveřejnila rezervy ani plán splátek. Oficiální oznámení stanovilo 26. srpen jako poslední den obchodování a doporučený termín pro žádosti o výběr, přičemž přístup k přihlášení má běžet do 31. ledna 2027.
BitMart chief executive Sheldon Lee dismissed accusations circulating on X as fabricated rumors on Monday, hours after a public campaign gave him until August 19 to explain where customer money went.
BitMart announced an orderly wind-down of its trading platform in July. Many users still report blocked withdrawals, and former employees say last month’s salaries remain unpaid.
Why BitMart Users Want Proof of ReservesA Chinese-language account posting as BitMart 币市 published a five-point accountability demand on Monday. It asks Lee and business partner Yi Li to disclose wallets, assets, liabilities, and usable reserves that a third party can verify.
The account also questions who ordered the withdrawal limits. Moreover, it asks when management first knew the platform could no longer process requests normally.
Strain showed up on-chain almost immediately. Ethereum withdrawals surged to a 2026 high within days of the notice, while BMX crashed 46% as the announcement landed.
The July 26 notice stopped deposits and new Bitmart registrations at once. It also switched futures accounts to reduce-only mode, which lets traders close positions but not open fresh ones.
Staff pay sits at the center of the complaint. Rank-and-file employees never decided how company funds were managed, the account argues, so they should not absorb the cost of that decision.
“Let the fund flows be traced clearly. Let users know where their money is. Let employees get back the pay they deserve.”
Legal Threats Replace a Repayment PlanLee skipped the demands point by point. Instead, he said the company had gathered evidence and would file a police report and send a lawyer’s letter to X requesting technical forensics.
Sheldon. Source: XHe added that employee assets carry no priority over client assets. Meanwhile, the reply offered no reserve figures, no liability total, and no repayment timeline.
The campaign wants a repayment plan with an order of priority, a start date, and an independent audit. So far, BitMart has published none of that.
On-chain investigator ZachXBT pushed back within minutes.
“If you actually have the liquidity then simply return the funds to everyone instead of posting vague statements?”
The official notice sets August 26 as the final trading day and the recommended cutoff for withdrawal requests. Login access runs until January 31, 2027.
BitMart is one of several venues to exit this year. Analysts read closures as a healthy reset, though staff cuts at Luno pointed to wider stress. European regulators, meanwhile, opened a custody review under MiCA after an earlier exchange collapse.
Wednesday’s deadline now sets the next test. Verifiable reserve data would answer the question quickly, while another statement without numbers likely will not.
Spoluzakladatel OpenGradient Matthew Wang obvinil BitMart z platební neschopnosti, protože jeho prostředky zůstaly na burze zmrazené. On-chain data zároveň ukazují, že výběry nad $25,000 se téměř zastavily.
OpenGradient co-founder Matthew Wang publicly accused BitMart of insolvency after his market-making funds became inaccessible on the exchange. Wang alleges BitMart pushed high-yield staking products a week before announcing its shutdown to lock in user liquidity. On-chain data shows withdrawals above $25,000 have largely stalled, and BitMart has not published a proof-of-reserves report. Founder Sheldon Xia denies any misappropriation, blaming delays on internal asset consolidation and manual reserve checks. Matthew Wang, co-founder and CEO of decentralized AI network OpenGradient, has accused BitMart of insolvency after his firm’s market-making capital remained frozen on the exchange in the middle of its ongoing wind-down.
Wang, whose company raised $8.5 million from investors including a16z crypto, Coinbase Ventures and SV Angel, posted on X that his team could not get execution requests processed on BitMart, describing the platform as functionally insolvent rather than simply delayed. Before starting OpenGradient, Wang worked in quantitative equity options market-making at Two Sigma, a background he pointed to as the basis for his read on BitMart’s liquidity position. BitMart is the third mid-sized centralized exchange to announce a shutdown within weeks, following AscendEX and BitMEX.
Wang says BitMart marketed high-yield lockups days before closing Wang’s more pointed claim concerns timing rather than delay. He noted that roughly a week before BitMart announced its shutdown, the exchange ran an aggressive campaign promoting high-APY staking and locked savings products to both token projects and retail users. He called this a deliberate liquidity play, arguing BitMart used the promise of high yields to pull fresh capital in right before cutting off access to it entirely.
If that sequence holds up, users who moved funds into locked products in late July now cannot retrieve them at all, which would put them in a worse position than users facing standard withdrawal delays elsewhere on the platform.
Five months from first notice to full shutdown JULY 26, 2026
BitMart announces “orderly cessation” of trading. New registrations, deposits and spot orders halt immediately; futures switch to reduce-only mode.
JULY 27, 2026
Lookonchain reports only 58 wallets withdrew a combined $805,000 in over 24 hours, including an eight-hour stretch with zero processed withdrawals.
AUGUST 26, 2026
Global trading operations are scheduled to stop completely.
JANUARY 31, 2027
Final date by which all BitMart trading platform operations officially terminate.
Lookonchain data undercuts BitMart’s “orderly” framing BitMart maintains that withdrawal channels remain open, but on-chain tracking paints a different picture. Analytics group Lookonchain found that withdrawals above $25,000 have effectively stopped moving, with several projects and high-net-worth accounts reporting pending requests ranging from the millions into the tens of millions of dollars. Only 58 wallets withdrew funds in the 24 hours after BitMart’s shutdown announcement, totaling roughly $805,000. For an exchange of BitMart’s size, that is a trickle. One eight-hour window in that period saw zero withdrawals processed at all. Smaller retail withdrawals may still clear. Larger institutional and market-maker balances, including Wang’s, stay stuck.
BitMart has also not published a proof-of-reserves report during the wind-down. For an exchange facing public insolvency allegations, that absence removes the one document that could mathematically confirm client assets remain backed one-to-one, leaving the dispute to play out through screenshots, on-chain trackers and dueling public statements instead. The market has already priced in the uncertainty. BMX, BitMart’s native token, fell more than 80% over the following week, trading near $0.057 after sitting above $0.30 just days earlier.
Xia denies fleeing, points to internal reserve audit BitMart founder Sheldon Xia addressed the allegations on August 8. He stated the company has not fled and does not intend to, and asked users to disregard screenshots and leaks circulating from current or former employees, framing them as unreliable.
Xia attributed the delays to systemic maintenance and an internal asset consolidation process, describing a core team working through manual reserve inventory checks rather than any deliberate withholding of funds. He denied that customer assets had been misused or withdrawn early, and said management plans to bring in third-party auditors and, if necessary, courts to produce a transparent accounting of the exchange’s financial position.
Two accounts that cannot both be right BitMart frames the slowdown as an operational bottleneck. The company insists the shutdown remains solvent and orderly. Whether BitMart can process the backlog before its August 26 trading halt will be the clearer test. A published proof-of-reserves report, something the exchange has so far declined to produce, remains the single document that could settle the dispute without relying on competing public statements.
Zakladatel BitMart Sheldon Xia odmítl obvinění ze zneužití zákaznických vkladů, zatímco výběry po oznámení shutdownu zrychlily na zhruba 300 za hodinu.
Nearly three weeks after BitMart announced its shutdown, concerns have grown over delayed withdrawals.
BitMart founder Sheldon Xia responded to increasing speculation surrounding the issue. He denied allegations of misappropriating customer deposits or removing them before announcing the shutdown.
In his defense, Xia claimed he did not abandon his duties in relation to the exchanges.
Source: X He also urged users to rely on verified information posted through official channels rather than unsubstantiated claims allegedly made by either current or former employees. However, withdrawals will continue to be the most reliable indicator that these assurances are valid.
Shortly after the 26th of July announcement, Lookonchain recorded 58 wallets withdrawing about $805,000, including an eight-hour period with no withdrawals. Meanwhile, BitMart-linked holdings fell from roughly $102 million to $69–71 million, though internal movements complicate that decline.
Therefore, Xia’s consideration of court involvement and independent third-party auditors becomes important. Verified asset disclosures and improving withdrawal throughput would provide stronger evidence that customer funds remain accounted for.
BitMart withdrawal processing accelerates More importantly, the acceleration in withdrawals offers evidence against the earlier stagnation that had fueled concerns around BitMart’s remaining assets. While ETH withdrawals were limited in early August, activity surged to over 200 per hour starting on the 7th of August.
Activity then exceeded 200 transactions per hour, while several periods approached 400, with the latest pace averaging roughly 300 hourly. This rate of processing indicates that BitMart has progressed from merely reviewing its assets to actively satisfying withdrawal requests.
Source: CryptoQuant Moreover, sustained processing could gradually reduce the backlog and ease pressure from customers awaiting funds. However, the exchange has not disclosed total outstanding liabilities, making the scale of progress difficult to measure.
Therefore, sustaining an average rate of 300 hourly or higher for both ETH and all other assets remains necessary. Higher levels of withdrawals would support Xia’s claims. Conversely, if withdrawals again slow down, liquidity concerns could rise once again.
Unpaid obligations test BitMart’s wind-down Yet clearing customer withdrawals addresses only one side of BitMart’s financial obligations. Reports of unpaid wages create competing claims against remaining assets. As funds leave, BitMart must balance customer repayments with employee and operating liabilities.
Moreover, asset quality matters because less-liquid holdings may provide weaker coverage. Without disclosed liabilities or independent reconciliation, the exchange’s financial position remains unclear.
Ultimately, an orderly wind-down requires enough resources to settle customers, employees, and other creditors without leaving unresolved obligations behind.
Final Summary BitMart founder Sheldon Xia addressed withdrawal concerns, denying asset misuse as the exchange continues its wind-down. BitMart’s faster withdrawals signal progress, but unpaid obligations and undisclosed liabilities leave the wind-down’s outcome uncertain.
Uživatelé BitMartu tvrdí, že 27 uživatelů má uzamčená aktiva v hodnotě přes 3,7 milionu USD, a požadují odpověď do 24 hodin. Podle nich výběry z USDG a PYUSD nefungují, i když burza slíbila, že zůstanou otevřené.
PANews July 30 news, X platform user @MINGLIbtc posted that a joint group of BitMart users with large affected assets has released an open complaint. As of July 30, 27 users have completed registration, with assets unable to be withdrawn normally totaling over 3.7 million USD, with a single user as high as 700,000 USDT, and the amount is still rising. Multiple users were attracted by stablecoin wealth management products such as USDG and PYUSD. After completing KYC, they redeemed their wealth management holdings and submitted withdrawal requests as required by the platform, but the actual exit channels were successively closed. Users pointed out that the USDG withdrawal networks include both ERC20 and Solana channels, both displaying “Paused”; the USDG/USDT and PYUSD/USDT trading pairs could not trade normally; wealth management users could neither withdraw directly nor exchange into USDT for withdrawal. Large withdrawals have been stuck for a long time, with only sporadic releases of small withdrawals around 100 USDT, and the 24-hour withdrawal limit on accounts has been drastically reduced. BitMart announced on July 26 that it would gradually cease operations, stating that withdrawal services would remain open, but users’ actual experience seriously contradicts the announcement.
Users raised eight questions, demanding that BitMart publicly disclose the status of asset backing, custodians, withdrawal processing standards and true progress, and arrange for a responsible person with decision-making authority to communicate directly within 24 hours at the latest; otherwise, they will submit evidence to the police and disclose the matter to international media. Users emphasized that they will not accept private discounted buyouts or installment plans, and their primary demand remains the full return of assets. Earlier, on July 21, BitMart had even reduced trading fees for the USDG/USDT and PYUSD/USDT trading pairs, only to announce the cessation of operations five days later, sparking users’ doubts about whether the platform had prior knowledge.
Crypto exchange BitMart to shut down after nine years. (Tim Mossholder/Unsplashed, modified by CoinDesk)Summary
Cryptocurrency exchange BitMart will wind down its trading platform after nine years, halting all trading by Aug. 26 and fully ceasing operations on Jan. 31, 2027.The closure, attributed vaguely to operating conditions, the market environment and future strategy, sent BitMart’s BMX token down about 58% in 24 hours, extending a yearlong slide of roughly 70%.BitMart, which recently reported about $1.6 billion in 24-hour trading volume, is keeping withdrawals open but warns of extra identity and security checks that could delay processing as users rush to exit.Cryptocurrency exchange BitMart said Sunday it will wind down its trading platform, ending nine years of operation and sending its exchange token down almost 60% after the announcement.
It is the second crypto exchange to announce a closure in the same week, with perpetuals trading powerhouse BitMEX saying Thursday it would shut down after 11 years, as CoinDesk reported.
The exchange stopped accepting new registrations, deposits and new trading orders from 01:30 UTC on Sunday, it said, with futures accounts moving to reduce-only mode.
All trading, spot and derivatives, ends on Aug. 26, and the platform formally ceases operations on Jan. 31, 2027. Withdrawals stay open throughout, though BitMart urged users to complete identity checks, close positions and submit withdrawal requests before the August cutoff.
Important Notice
After a careful evaluation of the Company's operating conditions, market environment, and future strategic direction, BitMart has made the difficult decision to commence an orderly wind-down of its trading platform operations. We deeply regret having to make… pic.twitter.com/KX3zczIrAh
— BitMart (@BitMartExchange) July 26, 2026 The company attributed the decision to its "operating conditions, market environment, and future strategic direction," offering no further detail on which of those forced the closure.
CoinDesk has reached out to BitMart for further comment.
BMX, the platform's token, fell to about 8 cents, down 58% over 24 hours, cutting its market value to roughly $27 million. The token was already down about 70% over the past year, so Sunday's drop extended a long decline rather than starting one.
The exchange's trading figures are significant, despite the closure. BitMart reported about $1.6 billion in 24-hour volume, up 51% from the previous period, with bitcoin accounting for nearly half of it. That jump more plausibly reflects users unwinding positions and moving funds out than any fresh demand, but it leaves open why a platform still clearing that kind of flow is closing.
Meanwhile, the withdrawal terms carry more friction than a routine exit. BitMart said requests may face additional review covering identity verification, device and IP checks, withdrawal-address screening, source-of-funds questions and sanctions checks, and warned that processing could stretch if request volumes spike.
BitMart lost about $196 million to a hot-wallet breach in December 2021, one of the larger exchange hacks of that cycle, and covered customer losses at the time.
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Crypto Flows, Share and the Selective Rotation
Crypto Flows, Share and the Selective Rotation
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Jul 22, 2026
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
Why it matters:
Markets repositioned since June, but Binance held share (~55% user funds, ~24% spot) and drew net inflows in early July while the tracked market saw outflows.
