TLDR Kazakhstan’s Astana Financial Services Authority (AFSA) plans to send court orders to Apple and Google to restrict access to six crypto platforms. The platforms named are BingX, Bitcoin.com, Huobi Global (HTX), BitMart, Coinbase and WEEX. Apple and Google become bound by the orders once they are formally served. Nine other platforms voluntarily restricted their apps in Kazakhstan, and AFSA withdrew its claims against them. AFSA has not confirmed that the orders have been served or that any app restrictions are in place. Kazakhstan’s financial regulator plans to send court orders to Apple and Google that would restrict mobile access to six crypto platforms, including Coinbase. The step brings app-store operators into the enforcement process alongside the crypto platforms themselves.
The Astana Financial Services Authority (AFSA) announced the plan on Oct. 20. The move is part of its enforcement against digital-asset services operating without authorization.
The orders cover services offered in the Astana International Financial Centre (AIFC), a financial jurisdiction in Kazakhstan, or to users located there.
Which Crypto Platforms Are Covered The orders name the operators of BingX, Bitcoin.com, Huobi Global (HTX), BitMart, Coinbase and WEEX.
AFSA issued the original default judgment on Sept. 15. A default judgment is issued when a party does not respond in a case. A variation order followed on Sept. 18.
The variation removed LBank from the list after its operator reported remedial measures. AFSA said LBank independently blocked access to its services in Kazakhstan.
The restrictions bar providing, offering or marketing digital-asset services without authorization in the AIFC or to users there. They also ban distributing mobile apps through any platform to provide those services.
How the Orders Affect Apple and Google Once notice is served, Apple and Google become bound by the order as if they were parties to the case. The order also lets both companies ask for a change or have it set aside after they acknowledge service.
AFSA’s announcement says the orders “will be sent” to the operators of the Google Play and Apple App Store. The regulator has not confirmed that service has taken place.
For the six remaining platforms, AFSA said it will enforce access restrictions through the injunctions. Restrictions on app availability would affect one route users take to reach these services.
The order does not explain what technical steps the app stores will take. It also does not say where any restrictions would apply.
Nine other platforms voluntarily restricted access to their apps in Kazakhstan through both stores. AFSA withdrew its claims against them as a result.
Those nine platforms are a separate group from the six operators still covered by the orders.
AFSA said seven platforms plan to obtain licenses to operate digital-asset trading facilities.
The regulator said the proceedings follow warnings sent to more than 20 platforms in 2025. Court action began in early 2026.
Coinbase previously faced access restrictions in Kazakhstan in November 2023. The current plan adds a separate route focused on app distribution.
For users of the six platforms, the practical effect now depends on service and implementation. This includes the geographic settings of any app-store restrictions.
Kazakhstan's AIFC Court has barred Coinbase, BingX, Bitcoin(.)com, HTX, BitMart and WEEX from offering unlicensed crypto services in the Astana financial centre.
Kazakhstan’s AIFC Court has restricted Coinbase, BingX, Bitcoin(.)com, HTX, BitMart and WEEX from offering unlicensed crypto services within the Astana International Financial Centre. The injunction also covers marketing services and distributing related mobile apps.
The Astana Financial Services Authority (AFSA) said the injunctions cover BingX, Bitcoin(.)com, Huobi Global (HTX), BitMart, Coinbase and WEEX, and prohibit the platforms from offering or marketing unlicensed digital asset services and distributing mobile apps for those services within the center.
What the ruling coversThe Astana International Financial Centre is a financial hub in Kazakhstan's capital that operates under its own legal framework and regulator, and it requires crypto firms to obtain a license to offer services within the center. The order is limited in scope. Justice Sir Stephen Richards specified in a Sept. 15 judgment that the injunctions applied only to the AIFC and users located there. It does not impose a Kazakhstan-wide app ban.
App store operators are also affected. The order binds Google and Apple as app-store operators, though the court declined to issue a separate injunction against them, saying AFSA should first discuss necessary steps with the firms.
AFSA said the court entered judgment by default after the platform operators failed to respond within the required period.
Timeline and regulator's positionAFSA said it warned more than 20 platforms about AIFC rules in 2025. Nine voluntarily restricted app access in the Central Asian country and seven said they intended to seek licenses. The Sept. 15 order named BingX, Bitcoin(.)com, Huobi Global (HTX), BitMart, Coinbase, LBank and WEEX; an amendment three days later removed LBank after its operator blocked access in Kazakhstan.
AFSA said users of unlicensed platforms lack safeguards required of licensed firms, including asset protection, disclosure, complaints handling and dispute resolution. The court emphasized that providing digital asset services without authorization undermines the integrity of the AIFC's regulatory system and creates unfair competition for licensed companies, which must comply with anti-money laundering and counter-terrorist financing requirements.
AFSA Chief Executive Evgeniya Bogdanova said the decision followed extensive and consistent efforts by the regulator's Supervision and Enforcement teams against unlicensed platforms. Kazakhstan's National Bank oversees digital-asset service providers outside the AIFC.
This is not the first time Coinbase has faced limits in the country. Authorities blocked its website in 2023 over alleged violations of the country's digital asset law.
Sources:
CoinDesk: Kazakhstan court bars Coinbase, five others from unlicensed crypto services in AIFC
Cointelegraph via TradingView: Kazakhstan court orders curbs on Coinbase, BingX and four others
crypto.news: Kazakhstan court orders restrictions on Coinbase, BingX and four others
On October 20, 2026, the Astana Financial Services Authority disclosed injunctions against the operators of BingX, Bitcoin.com, Huobi Global (HTX), BitMart, Coinbase and WEEX. The regulator’s announcement concerns a September 15 judgment, varied on September 18, restricting unlicensed digital asset services and mobile-app distribution within the Astana International Financial Centre.
AFSA’s publication record dates the announcement to October 20 at 09:44 UTC, a disclosure of injunctions issued the previous month. The underlying orders set out the platforms’ obligations and the territory they cover. They also specify the conditions under which Apple and Google become bound, limiting what AFSA’s account establishes about access restrictions.
The injunction stops at the AIFC boundary The varied order restrains the operators from providing, offering or marketing digital asset services on AIFC territory, or to users located there, without the required authorization. A separate provision covers distribution: the operators cannot make mobile applications available through any platform for unauthorized services in that territory or to those users. Both the services and the distribution of their apps fall under the restriction.
The injunction does not cover Kazakhstan nationwide. In the original judgment, the court explains why changes in national legislation required narrower relief. Amendments to the Law on Digital Assets took effect on May 1, 2026. They deleted Article 11 and introduced a detailed national regime through Article 12-1. The judgment reads that change as assigning the wider regulatory role to the National Bank.
AFSA’s authority over unlicensed activity inside the centre remains the basis for the restraints. The court gave AFSA permission to seek a variation if it could present a properly reasoned basis for broader terms. AFSA would have to make another application to pursue that relief. The permission itself does not extend the order’s territorial reach: its operative wording still identifies the AIFC and users located there.
LBank’s operator took a separate route out of the proceedings. AFSA says it independently blocked access to services in Kazakhstan, after which the court removed it from the order on September 18. The regulator describes that operator’s action as Kazakhstan-wide. The service and distribution clauses in the varied order impose a narrower geographic restriction on the operators that remain subject to the injunction.
Apple and Google are bound upon service The varied order directs that notice be served on Google and Apple. Upon service, they become bound by the judgment and order as though they had been parties to the claim. The operative wording makes service a condition of that obligation. AFSA’s announcement says it will send the orders to the app-store operators; it does not record that service has been completed.
The court declined to grant the separate app-store injunction AFSA sought. The platform operators had judgment entered against them by default. Apple and Google were not themselves parties in default. The judge questioned the legal basis for an independent injunction through that procedure and whether the court should grant one without first giving the companies an opportunity to make representations.
Instead, the judgment calls for dialogue between AFSA and the app-store operators about the specific steps needed to prevent unlawful activity. It leaves practical measures to that engagement in the first instance, while the order sets out how Apple and Google become bound. The disclosed documents do not show a completed app-removal operation under these orders.
Once bound, the app-store operators face a possible contempt finding if they knowingly permit the platforms to breach the injunction, the judgment says. It gives knowingly allowing distribution through their stores in breach of the restriction as an example. Apple and Google also have a separate right to ask the court to set aside or vary the judgment or order, provided they acknowledge service under the court rules.
Default judgment and the enforcement campaign The judgment records that the named operators failed to file an acknowledgment of service or a defence within the required time. The court entered a default judgment without their participation at trial. LBank’s later removal changed which operators remained subject to it. The revised order names the other platforms and retains the restrictions on their services and application distribution.
The varied order also makes the remaining operators jointly and severally liable for AFSA’s costs of KZT 1,995,479.95. The order identifies this as the claimant’s costs of the proceedings, a litigation-cost award separate from the operating restrictions. It does not allocate compensation to customers of the platforms or provide a mechanism for returning their assets.
AFSA says the litigation followed written warnings sent to more than 20 crypto platforms in 2025. Court proceedings began in early 2026 against platforms that continued operating without a licence. According to the announcement, nine platforms voluntarily restricted application access in Kazakhstan through Google Play and the Apple App Store. AFSA withdrew its claims against those platforms after they imposed the restrictions.
A further seven platforms expressed an intention to obtain an AFSA licence to operate digital asset trading facilities, according to the regulator. Those statements concern an intention to seek authorization, not an issued licence. AFSA reports them separately from the platforms that voluntarily restricted access and from the remaining named operators now subject to the injunctions.
The restraints cover customers’ access to unlicensed services and the apps distributing them within the AIFC. AFSA also warns that clients of unlicensed platforms lack the protections applicable to licensed firms for safeguarding assets, information disclosure, complaints handling and dispute resolution. Its announcement provides no completed-service date for Apple or Google and no confirmed implementation date for app-store restrictions under these orders.
Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
Nearly five years after hackers drained about $319.5 million from BitMart, the exchange finally has a repayment plan on paper. It still needs a judge to sign off on it.
On September 30, 2026, the Cayman Islands-based exchange released a preliminary restructuring proposal. The goal is to deal with a shortfall in user balances tied to the December 2021 breach. A court application is targeted for December 2026 or January 2027.
How the proposal works BitMart plans to dollarize balances using weighted average trading prices tied to July 26, 2026. Whatever your account held, in whatever tokens, gets translated into a single dollar figure. That number becomes your claim.
From there, users would choose between two broad paths.
The first is a pro-rata payout from the exchange’s available liquid assets. Users taking this route could receive fiat or stablecoins.
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The second path is a conversion into new tokens. The proposal introduces two of them: Restitution Tokens and Continuum Tokens. Together, they are designed to reflect potential recoveries and the exchange’s future profitability.
Who is involved and what happens next BitMart is not drafting this alone. The restructuring is being advised by consulting firm Alvarez & Marsal and law firm White & Case.
BitMart plans to solicit input from its 50 largest users over the next three to four weeks. Adjustments to the proposal are anticipated in November.
After that, the exchange expects to file its court application. The target window is December 2026 or January 2027.
The plan must earn court sanction before anything moves forward. Until then, it remains a proposal, not a payout schedule.
The long road from hack to plan The breach itself was confirmed as of December 4, 2021. At roughly $319.5 million in losses, it left a hole in the exchange’s balance sheet that never fully closed.
BitMart has been reviewing its operational strategy since mid-2026, citing a weaker market environment. Withdrawals have been restricted as the exchange manages operational losses and balance sheet deficits.
The exchange’s financial health has also drawn ongoing scrutiny, including discussions about potential bankruptcy proceedings, which adds weight to the decision to pursue a structured, court-supervised route.
What this means for users and the industry The dollarization date matters. Locking balances to July 26, 2026 pricing means users do not capture any price moves after that point. Someone holding a token that rallies later would not see that gain reflected in their claim. Someone holding a token that drops would be shielded.
The feedback process itself is worth watching. BitMart is starting with its 50 largest users. Their input could shape the terms everyone else lives with.
The key dates to track are November, when revisions are expected, and the December 2026 to January 2027 window for the court application. Until a court sanctions the plan, BitMart users are holding a proposal, not a check.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.
PANews reported on October 1 that crypto trading platform BitMart issued an "Announcement on the Preliminary Indicative Plan and Roadmap," stating that since August 2026, the company has been reviewing its assets and liabilities and formulating a resolution plan. While conducting preliminary due diligence with Alvarez & Marsal and White & Case, it has now formed a preliminary plan to offer users different asset recovery paths.
BitMart stated that the main reasons for its current difficulties include the 2026 crypto market downturn, and its futures business being exploited by wash-trading groups that took advantage of rebate and zero-slippage incentive policies for arbitrage, causing fee revenue to decline and turn into losses. In addition, a hacker attack in December 2021 caused approximately $319.5 million in digital asset losses and created a gap between assets and liabilities. Since May 2026, the company has also faced social media attacks, panic withdrawals by users, and the leakage of employees' personal information.
According to the preliminary plan, BitMart intends to convert users' account balances into Dollarised Account Balances, which will be valued by court-appointed personnel based on the weighted average trading prices of the relevant tokens during the period from July 26, 2026 to a designated period. Users may then choose from the following three options:
Immediate Distribution Option: Users can receive a pro-rata distribution of assets consisting of cash, stablecoins (including USDC, PYUSD, and USDT), and major tokens such as BTC, ETH, and SOL.
Restitution Token Option: Users can convert their Dollarised Account Balances into "Restitution Tokens," which will be backed by funds BitMart recovers in the future from the 2021 hacker attack. BitMart stated that the latest investigation report shows that some of the stolen funds may still be held on certain centralized trading platforms.
Continuum Token Option: Users can convert into a new token that can be traded on decentralized exchanges. The value of this token will be supported by investment assets held by BitMart, funds obtained from selling low-liquidity assets, and (if sufficient financing is obtained in the future and business is restored) a portion of the future distributable profits of certain projects.
BitMart stated that over the next 3 to 4 weeks, the team will consult with advisors and the top 50 users ranked by asset size on the details of the plan, and adjust the plan based on feedback. At the same time, the company will prepare a report showing all users the estimated recovery ratios under the different options. The plan still needs to obtain relevant approvals before implementation.
Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
BitMart has launched a dedicated user engagement portal for questions about withdrawals and its future plans, giving customers a formal channel to submit concerns as financial adviser Alvarez & Marsal reviews the exchange’s position.
Summary
BitMart has launched a user portal for withdrawal enquiries, general feedback and potential restructuring proposals. Submissions will be reviewed by BitMart, Alvarez & Marsal and the exchange’s legal advisers as part of an ongoing assessment. The portal will not process individual withdrawals, and submitting a ticket will not change the status of an account or assets. BitMart plans to appoint an independent third party to oversee operations and the safekeeping of assets during the review. According to BitMart’s official announcement, the portal will collect questions, concerns and feedback covering withdrawal arrangements, the exchange’s action plan and its future direction. Submissions will be considered as part of an assessment being conducted by BitMart, Alvarez & Marsal and the company’s legal advisers.
The portal comes one week after BitMart appointed Alvarez & Marsal as its financial adviser on Sept. 9. As crypto.news previously reported, A&M was brought in to assess the exchange’s finances, stakeholder claims and withdrawal arrangements after trading had been suspended.
BitMart said at the time that a dedicated user feedback portal would be published within five business days. The company expected to provide details of its action plan and consultation process within three weeks of the Sept. 9 announcement.
BitMart portal accepts withdrawal and restructuring enquiries Users accessing the portal must select “User Engagement Portal” as the issue type. Submissions made under other categories will be processed as regular customer support tickets and will not form part of the assessment process, BitMart said.
Customers are asked to provide an email address, with existing users encouraged to use the address registered to their BitMart account. A BitMart ID can be provided but is optional.
The portal separates submissions into four categories: withdrawal-related enquiries, general feedback, potential investor or restructuring proposals, and other enquiries. Users can provide a subject, description, relevant dates or transaction references and supporting files.
Submitting the form does not immediately complete the process. BitMart said users will receive a verification message from [email protected] and must click the link in that email before the submission is formally filed. A confirmation containing a ticket number is then sent once verification is complete.
The exchange asked users to submit only one ticket for each issue, saying duplicate tickets would not speed up the review. While every verified submission will be recorded and reviewed, BitMart warned that the volume of correspondence could prevent individual responses to every user.
Portal will not process individual BitMart withdrawals BitMart stressed that the portal does not function as an individual withdrawal processing system. Filing a ticket will not change the status of a user’s account or assets.
Withdrawal access has remained one of the main issues surrounding the exchange since it began winding down its trading operations in July.
BitMart announced its phased shutdown on July 26 after reviewing its operating conditions, market environment and future strategy. The company stopped new registrations, crypto and fiat deposits and new spot orders, while futures accounts moved into reduce-only mode.
Trading services ended on Aug. 26 under the timetable announced by the exchange. BitMart originally planned to terminate its wider trading platform operations on Jan. 31, 2027, while retaining limited account access for users to view records and submit withdrawals.
Questions about customer access to funds had surfaced before trading ended. On Aug. 17, a group of users and employees called for reserve disclosures and demanded information about assets, liabilities, wallets and reserves available to meet withdrawals.
The group asked BitMart to publish a repayment plan and allow independent third-party scrutiny of its financial position. Its statement said a large number of customers were unable to withdraw assets, while some employees had not received salary or compensation owed to them.
BitMart had previously maintained that withdrawals remained available during its wind-down, though requests could be subject to identity checks, sanctions screening, source-of-funds reviews and wallet ownership verification.
BitMart has been considering a phased restart The exchange’s plans changed in August when it began considering restructuring options instead of proceeding solely with the original shutdown.
On Aug. 21, BitMart said it was evaluating creditor distributions alongside the possible phased restart of selected operations. White & Case was appointed as restructuring counsel to help assess the available options.
The proposal did not amount to an approved restart. BitMart said any resumption would remain subject to legal, financial, operational and regulatory reviews, while the announcement did not specify creditor eligibility, payout percentages or the amount of assets available for distributions.
No public bankruptcy petition or court-supervised restructuring process had been identified when the plan was announced.
The new portal now provides a specific category for potential investors or restructuring proposals, allowing such submissions to enter the assessment being conducted with the exchange’s advisers.
A&M’s appointment on Sept. 9 added another external adviser to that process. BitMart said the firm would assist in reviewing its current operations and asset position before related financial information was released.
At the time of the appointment, the exchange had not published an audited asset balance, creditor recovery rate or timetable for restricted withdrawals.
Independent third party remains part of BitMart plan BitMart said information submitted through the portal will be accessible to the company and its advisers for the ongoing assessment and retained under its data retention policy.
The exchange warned customers about impersonation attempts during the process. It said the official portal published through its own channels is the only feedback portal and that verification and confirmation emails will come from [email protected].
Users were told to disregard other links or contacts claiming to offer feedback, claims processing or asset recovery services on BitMart’s behalf. The company said it will never request passwords, two-factor authentication codes, private keys or seed phrases.
Similar warnings were issued when the exchange announced its shutdown in July, when BitMart told customers that it would not charge an expedited withdrawal fee or request account credentials and private wallet information.
The company plans to release further updates on its action plan and the financial assessment while working toward the appointment of an independent third party to oversee operations and the safekeeping of assets during the process.
BitMart appointed Alvarez & Marsal as its financial adviser on Wednesday, its self-imposed Sept. 9 deadline for an update, but did not publish the restructuring and business resumption roadmap it said it was developing.
Alvarez & Marsal will work with BitMart’s legal advisers to evaluate the exchange’s assets, financial position, stakeholder issues and possible paths forward, according to Wednesday’s announcement. The review will also consider proposals from unidentified third parties, BitMart said on X.
BitMart said it will deploy a dedicated web portal within five working days to collect user feedback on its action plan and future direction. It said further updates on the feedback process and action plan would follow on a rolling basis over the next three weeks.
Echo Base, which organized an ad hoc committee of BitMart claimholders, called the appointment “the most encouraging step BitMart has taken since July.”
“What arrived was an advisor appointment and two new deadlines, with no reserve position, no asset inventory, no recovery estimate and no withdrawal timetable,” Roshan Dharia, CEO of Echo Base, told Cointelegraph.
BitMart has faced scrutiny over its financial position and handling of customer assets since its July 26 wind-down announcement, after users reported withdrawal delays.
Neither BitMart nor Alvarez & Marsal responded to Cointelegraph’s requests for comment on this story.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
BitMart appointed Alvarez & Marsal as its financial adviser on Wednesday, its self-imposed Sept. 9 deadline for an update, but did not publish the restructuring and business resumption roadmap it said it was developing.
Alvarez & Marsal will work with BitMart’s legal advisers to evaluate the exchange’s assets, financial position, stakeholder issues and possible paths forward, according to Wednesday’s announcement. The review will also consider proposals from unidentified third parties, BitMart said on X.
BitMart said it will deploy a dedicated web portal within five working days to collect user feedback on its action plan and future direction. It said further updates on the feedback process and action plan would follow on a rolling basis over the next three weeks.
Echo Base, which organized an ad hoc committee of BitMart claimholders, called the appointment “the most encouraging step BitMart has taken since July.”
“What arrived was an advisor appointment and two new deadlines, with no reserve position, no asset inventory, no recovery estimate and no withdrawal timetable,” Roshan Dharia, CEO of Echo Base, told Cointelegraph.
BitMart has faced scrutiny over its financial position and handling of customer assets since its July 26 wind-down announcement, after users reported withdrawal delays.
Neither BitMart nor Alvarez & Marsal responded to Cointelegraph’s requests for comment on this story.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
BitMart blew past its own September 9 deadline for delivering a recovery roadmap to users, replacing it instead with a short announcement that a financial adviser has been brought on board. The exchange appointed Alvarez & Marsal, a well-known restructuring firm, to evaluate its financial position and explore options for orderly withdrawals.
What BitMart did not provide: audited asset balances, creditor recovery estimates, or any kind of withdrawal timetable. The exchange committed to launching a user feedback portal within five working days and promised further updates in three weeks.
A wind-down that keeps getting windier BitMart announced an orderly wind-down on July 26, 2026, citing unfavorable market conditions. That same day, the exchange stopped accepting new registrations, deposits, and trading orders. All trading activity was fully halted by August 26, with a complete platform closure targeted for January 31, 2027.
Before the Alvarez & Marsal appointment, BitMart had already engaged White & Case as restructuring counsel. That firm was tasked with exploring options for creditor distributions and a possible phased restart of limited operations.
An ad hoc committee of affected users formed in the wake of the shutdown, pushing aggressively for transparency. The group set an August 19 deadline for BitMart to disclose its reserves and produce a repayment plan. That deadline came and went. Now the September 9 roadmap deadline has also passed without substance.
BMX token in freefall Within 24 hours of the July 26 shutdown announcement, BMX dropped approximately 58% in value. At that point, the token was staring at an 83% year-to-date decline.
No updated BMX price data was included in BitMart’s September 9 announcement.
What Alvarez & Marsal’s involvement signals The scope of A&M’s work will likely include a full accounting of BitMart’s assets, liabilities, and any potential clawback actions. The fact that BitMart has so far declined to share even basic asset figures is the single most concerning detail in this entire saga.
The feedback portal BitMart plans to launch within five business days will be an early test of whether the exchange intends to engage meaningfully with its user base. The next concrete milestone is the three-week update BitMart promised. If that deadline also passes without asset disclosures or a withdrawal framework, the ad hoc user committee will likely escalate pressure.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
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.
Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
On-chain detective ZachXBT has issued a community alert, reporting that over the past three days, multiple verified WOO X users have complained their withdrawals remain stuck in "pending" or "processing" status. As of the time of his post, WOO X has not released a statement on the matter. WOO X was incubated by Kronos Research and acquired by FusionX Digital in the fourth quarter of 2025. ZachXBT pointed out that FusionX Digital is reportedly linked to BitMart founder Sheldon Xia. ZachXBT also noted that BitMart announced on July 26, 2026, it would cease operations and restructure, leaving users unable to access millions of dollars in trapped funds, with complaints rising steadily on the X platform. Sheldon Xia only issued a vague statement asserting user assets are secure, but these claims have not been independently verified.
The distressed-asset firm says BitMart never answered its offer of up to $10 million to fund a court-supervised bankruptcy, and it is now organizing creditors to pursue recovery.
Posted September 3, 2026 at 6:29 pm EST.
A distressed-asset firm is trying to force a question left open five weeks after BitMart began shutting down: what happens to the customer funds users say they can no longer withdraw.
Echo Base, a privately funded special-situations firm, said on Sept. 2 that it has organized an ad hoc committee of BitMart claimholders and retained bankruptcy counsel, and is weighing whether qualifying creditors could push the exchange into an involuntary insolvency proceeding, though it has not said which BitMart entity or jurisdiction it would target. The committee, which Echo Base says has retained Young Conaway Stargatt & Taylor and Ashbury Legal, represents a significant and growing balance of frozen customer assets, the firm said, without disclosing a figure.
An Offer Left Unanswered The committee formed after BitMart left the firm’s offer unanswered, according to Echo Base’s announcement. The firm says it submitted a written proposal on Aug. 6 offering to commit up to $10 million to fund a pre-negotiated bankruptcy that would cover the case’s costs through confirmation. It also says an affiliate had tried to withdraw assets on July 24, roughly 31 hours before BitMart announced it would shut down, then delivered a formal demand on Aug. 8 documenting 15 unanswered contact attempts. BitMart responded to neither, the firm says.
Echo Base’s argument rests on BitMart’s own terms. BitMart’s user agreement states that title to supported digital assets held in customer wallets “shall at all times remain with you and shall not transfer to BitMart,” and that those assets are “not property of BitMart, and are not subject to claims of BitMart’s creditors.”
“BitMart still has time to run an orderly wind-down. What it does not have is anyone willing to put capital behind one,” CEO Roshan Dharia said. “Every week this goes unanswered, the version that remains available narrows.”
What BitMart Has Promised BitMart began winding down on July 26, with platform operations set to end in January 2027. BitMart’s notice said withdrawals would remain available, but customers have since reported that their requests stay pending. In an Aug. 21 statement, the exchange said it had appointed White & Case as restructuring counsel and would deliver a roadmap, weighing a phased restart alongside creditor distributions, by Sept. 9.
Founder Sheldon Xia has denied misappropriating customer assets. In an Aug. 8 post, he said the company had not moved to withdraw funds early or evade responsibility, and was weighing bringing in courts and independent auditors to produce a transparent report. He had earlier said BitMart’s own X account was hacked when it posted a proof-of-reserves demand.
That promised roadmap now lands with an organized creditor group waiting on the other side.
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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.
BitMart hired White & Case and floated a phased restart alongside creditor distributions, a shift in language that arrives while users report blocked withdrawals.
BitMart is weighing a restructuring plan days before its scheduled final trading day.
Posted August 24, 2026 at 5:13 am EST.
BitMart said Friday it is developing a potential restructuring plan that could combine a phased restart of some operations with distributions to creditors, less than four weeks after telling users it would wind down entirely. The Cayman Islands-based exchange said it has appointed law firm White & Case as restructuring counsel and said it will publish a roadmap no later than Sept. 9.
The announcement landed days before BitMart’s trading deadline. The exchange said on July 26 that it would cease operations after nine years, immediately halting new registrations, deposits and new trading orders and moving futures accounts into reduce-only mode. The exchange said trading would end on Aug. 26, with the platform set to terminate on Jan. 31, 2027. The July notice cited operating conditions, the market environment and future strategy.
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Users have been reporting blocked withdrawals since the July announcement. On Aug. 17, an open letter posted from BitMart’s Chinese-language X account called on founder Sheldon Xia and purported partner Nancy Li to open the company’s wallets, assets, liabilities and usable reserves to independent verification by Aug. 19. Lee said the account had been hacked and described the claims as fabricated rumors, adding that he would file a police report.
BitMart’s BMX is down over 86% this year.
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BitMart said on Aug. 21 that it was exploring a restructuring plan involving creditor distributions and the phased restart of selected operations, less than four weeks after announcing a complete wind-down.
Summary
BitMart appointed White & Case while evaluating creditor distributions and a phased operational restart plan. September 9 is BitMart’s deadline for another update, not a guaranteed restructuring completion date yet. Existing notices still schedule all trading to end August 26 at 01:00 UTC unless revised. BitMart has not published creditor eligibility, payout percentages, reserve data or a court filing publicly. BMX trades near $0.06 after losing roughly 80% over one month, according to trackers currently. The exchange appointed White & Case as restructuring counsel. It promised another update by Sept. 9 but did not cancel its existing Aug. 26 trading cutoff or Jan. 31, 2027, closure date.
The announcement marks BitMart’s first public reference to creditors. It does not explain which customers or counterparties fall within that category.
BitMart restart remains under assessment BitMart said the proposed plan could combine an orderly resumption of certain services with distributions to creditors. Any restart remains subject to legal, financial, operational and regulatory reviews.
🚨 BREAKING: BitMart is now considering a phased restart and creditor payouts, less than four weeks after announcing plans to shut down.
The exchange has hired restructuring counsel White & Case and says a roadmap could be released by September 9.
No formal bankruptcy or… pic.twitter.com/9gIHAEusZn
— THC Humor 💹🧲 (@THChumor) August 23, 2026 “The potential plan may include the phased resumption of certain operations,” BitMart said. The company has not approved or launched that plan.
White & Case will evaluate available options with BitMart’s other advisers. The law firm’s appointment does not establish that BitMart has entered bankruptcy or another court-supervised process.
No verified bankruptcy petition, restructuring case number or creditor-claim portal had been published when this report was prepared. BitMart also has not identified the legal entity or jurisdiction that would administer distributions.
The exchange said it expects to consult its community after a business resumption plan launches. It has not explained how customers would participate or whether any creditor vote would be required.
August 26 trading deadline remains active BitMart’s closure notice still schedules all spot, futures and other trading to end at 01:00 UTC on Aug. 26.
Futures accounts have entered reduce-only mode, while spot markets stopped accepting new orders. New registrations and cryptocurrency and fiat deposits began closing on July 26.
Any futures positions remaining at the deadline may be settled using the applicable mark price, index price or platform settlement rules. BitMart said it would publish separate settlement arrangements, but the restructuring update did not provide them.
The exchange previously recommended completing verification and submitting withdrawal requests before 05:00 UTC on Aug. 26. Withdrawals officially remain available, although additional identity, sanctions, transaction-history and wallet checks may delay processing.
As crypto.news reported, the shutdown announcement sent BMX down more than 60% within the surrounding 24-hour period. The possible restructuring does not currently change the withdrawal guidance.
Creditor language raises unanswered questions BitMart did not disclose why customer or counterparty balances may require creditor distributions rather than ordinary withdrawals. Its July notice cited operating conditions, the market environment and future strategy without describing a shortfall.
The latest statement includes no balance sheet, liability total, reserve report or recovery percentage. It also does not establish whether user assets and unsecured commercial claims would receive different treatment.
Earlier concerns about BitMart’s reserves and custody position were based partly on third-party wallet tracking and customer reports. Those observations do not independently establish the exchange’s complete assets or liabilities.
Onchain balances cover only publicly identified wallets. They cannot show undisclosed addresses, fiat holdings, offchain liabilities or assets held through custodians. A reliable recovery assessment therefore requires audited financial information or verified court disclosures.
September roadmap must clarify payouts BitMart said it would “endeavour” to provide another update no later than Sept. 9. The wording commits the exchange to further communication rather than a finalized restructuring agreement.
The next announcement needs to identify which operations could restart, which legal entities owe creditors and how claims will be valued. Customers also need information about payout timing, available assets and the treatment of pending withdrawals.
Unless BitMart formally changes its schedule, trading will stop two weeks before the restructuring update. The wider platform remains scheduled to terminate at 15:59 UTC on Jan. 31, 2027.
BMX was trading near $0.061 on Aug. 23, according to CoinGecko. The token remained approximately 80% below its price one month earlier despite recovering modestly over the preceding week.
The Sept. 9 update will determine whether BitMart has a viable restart proposal or continues with its original wind-down. Until then, the phased restart and creditor distributions remain possible components rather than confirmed outcomes.
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.
BitMart is now looking at a restructuring plan instead of fully shutting down the exchange, but the latest update has left users with more questions about their funds.
The exchange says it is working on a possible recovery plan, while users continue to seek clear answers on withdrawals, assets, and when normal services could return.
BitMart Moves From Shutdown to RestructuringIn a recent announcement on X, BitMart said it is developing a potential restructuring plan after talks with users, stakeholders, and advisers.
“BitMart is developing a potential restructuring plan as an alternative to a full wind-down.”
The plan could allow some services to return in stages while creditors receive distributions. However, the plan still needs legal, financial, operational and regulatory review.
To help with the process, BitMart has hired White & Case as its restructuring counsel. The firm will work with BitMart’s other advisers to assess the available options and help build a plan for restarting parts of the business.
However, a roadmap is currently being developed together with our advisers, and we expect to share another update by September 9, 2026.
But Users Want One Answer: Where Is the User’s Money?The biggest concern for users remains withdrawals.
Even BitMart in its restructuring plan did not say that withdrawals have fully resumed. Instead, it said a roadmap is still being prepared and that more details will be shared by September 9.
This has frustrated users who want clear details about customer assets, available reserves, where the funds go, and when they can access their funds.
BitMart had already announced an orderly wind-down on July 26, including plans to stop new registrations and deposits.
For now, that shutdown plan remains in place despite the possible restructuring. BitMart has asked retail users to submit their crypto withdrawal requests by August 26, 2026.
So, if the plan does not change, the final platform closure is set for January 31, 2027, when BitMart’s services will officially shut down.
Story Ends Here
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BitMart announced via its official X account that it is developing a potential restructuring plan as an alternative to a full shutdown. The plan may involve the phased resumption of partial operations under an orderly arrangement and distributions to creditors, though additional legal, financial, operational, and regulatory assessments are still required. The exchange has appointed White & Case as its restructuring legal counsel to assist in evaluating viable options and formulating a framework for the restructuring and phased resumption of operations. BitMart noted that it is currently collaborating with its advisors to develop a roadmap and will aim to provide further updates by September 9, 2026.
Key Takeaways Community members and staff have issued formal demands for asset transparency and repayment timeline, with an Aug. 19 deadline CEO Sheldon Lee attributed the demands to a compromised account, calling them “fabricated rumors” Multiple users report continued inability to access funds following late July operational changes Staff members claim outstanding July wages and severance remain unpaid Failure to meet the deadline may trigger submissions to authorities and regulatory bodies across multiple regions The cryptocurrency exchange BitMart is confronting escalating demands for accountability following its announcement to cease operations. An open statement shared on social media platform X has given CEO Sheldon Lee until Aug. 19 to address calls for complete financial disclosure.
🚨BREAKING: BitMart founder denies an explosive letter attacking management, claiming hackers posted it through the company’s Chinese X account.
An open letter, apparently posted by employees, demanded answers from Sheldon Xia and Yi Li by August 19 about:
– Where users’ money… https://t.co/kOYdVVG6fj pic.twitter.com/ARuLs9yKaT
— Coin Bureau (@coinbureau) August 17, 2026
The public communication, published through BitMart’s Mandarin-language X profile, urged Lee and co-founder Yi Li to make public their wallet addresses, asset holdings, outstanding obligations, and accessible reserve funds. The statement further requested acceptance of an external independent audit and publication of a comprehensive repayment schedule.
Lee’s response characterized the account as compromised and dismissed the allegations as “fabricated rumors.” He indicated the platform would pursue a police investigation and submit a formal complaint to X. However, he stopped short of directly engaging with the specific requests outlined.
On July 26, BitMart revealed plans to discontinue accepting new user registrations, incoming deposits, and trading functions. According to the announcement, Aug. 26 would mark the last day for trading, with complete operational cessation scheduled for Jan. 31, 2027.
Fund Access Remains Restricted for Numerous Customers Following the operational shutdown disclosure, customers have persistently reported blocked access to their holdings. A user identified as BeardStaff stated their funds became unreachable on July 26, and noted that a VIP account manager excluded them from a Telegram communication channel on the same date withdrawals stopped functioning. They assert approximately $10 million remains trapped on the platform.
Blockchain analyst ZachXBT commented on Lee’s response, suggesting that if the exchange possessed sufficient liquidity, it should prioritize returning customer assets instead of releasing ambiguous public statements.
The platform had earlier communicated that withdrawal functionality would continue operating but might require enhanced identity verification procedures. BitMart also cautioned that elevated request volumes could extend processing durations.
Staff Concerns and Potential Restructuring Employee compensation issues are also highlighted in the community demands. The open statement indicated certain team members have not received July paychecks or termination-related payments following the shutdown announcement. Lee maintained that employee holdings receive identical treatment to customer assets, asserting all parties are classified as clients without preferential treatment.
Roshan Dharia, who heads distressed asset firm Echo Base, informed CoinDesk that his organization presented BitMart with a financed restructuring proposal, including debtor-in-possession capital. He reported the exchange has not acknowledged the offer.
Dharia emphasized that resolution without judicial oversight appears unlikely given the customer base scale. “There is no version of this that ends well without going to court,” he stated.
The public letter additionally requested Yi Li provide clarification regarding fund origins in accounts purportedly associated with her, which the statement suggested may contain tens of millions in value. The authors emphasized this was not an accusation of misconduct and requested public explanation.
Should no credible response arrive by the Aug. 19 cutoff, the statement’s authors indicated they would forward documentation to law enforcement agencies, financial regulators, legal counsel, and media organizations across various jurisdictions.
BitMart was previously targeted in a December 2021 security breach resulting in $196 million in losses, following which the platform pledged to reimburse impacted users.
The wind-down process for BitMart is under increasing pressure. This is after customers have claimed that their ability to withdraw money is being limited while former employees are claiming that they have yet to be paid the salary owed.
As a result, its Chinese X account has called for an independent third party to verify all users’ wallets, assets, liabilities, and reserves held at BitMart. The dispute follows last week’s withdrawal concerns, when founder Sheldon Xia denied claims that he misused customer funds.
Source: X Xia now reports that hackers accessed the Chinese account and sent out false information about him, prompting him to pursue legal action.
Withdrawals may explain part of that decline, but unresolved liabilities increase the importance of knowing what remains. Independent verification would clarify whether BitMart still holds enough assets to meet customer and employee claims as the wind-down progresses.
BitMart’s reserves draw scrutiny That uncertainty now makes BitMart’s remaining asset coverage more important than the movement of individual withdrawals.
Prior to the operational announcement by Arkham, approximately $71 million was attributed to the exchanges’ exchange-linked wallets. As of writing, approximately $35.6 million is being attributed to these same wallets. Even though some of the decline may be from customers withdrawing their funds.
Source: Arkham However, merely showing a decrease in wallet balance does not provide any information as to whether or not BitMart is able to pay its customer claims.
In order to determine if BitMart still has sufficient assets to meet its customer liabilities, the exchange will have to provide proof of reserves, which links identifiable assets that remain with the current customer liabilities.
Currently, there is no way for the public to know what percentage of each customer liability that BitMart can currently fund. Therefore, the ability of the exchange to properly close down will depend upon information that is unavailable through on-chain wallet balances alone.
A complete disclosure of all wallet activity by BitMart and a corresponding matching to each obligation. This would show whether falling reserves reflect orderly repayments or reveal a funding shortfall.
17 August 2026 | 21:14 BitMart founder Sheldon Lee says its Chinese-language X account was compromised, but his public responses leave unanswered questions about individual withdrawal requests during the exchange’s wind-down.
A disputed post called for an independent audit A post from BitMart’s Chinese-language X account called on Sheldon Lee and Yi Li to open the exchange’s finances to outside scrutiny.
The post alleged that some customers could not access funds and that employees had not received July salaries or compensation owed to them. It called for an independent examination of BitMart’s wallets, assets, liabilities and available reserves.
It also set an August 19 deadline for a response.
Those claims require caution. BitMart now says the account was compromised, the identity of the person behind the post has not been established, and the allegations have not been independently verified.
Lee says the account was compromised Lee said on his personal X account that BitMart had collected evidence showing the post’s contents were fabricated. He said the company would file a police report and ask X for technical and data analysis related to the account.
In a separate response, Lee said customer claims should take priority over employee claims.
Neither post disclosed BitMart’s current wallet balances, liabilities or liquidity. They also did not provide a timetable for individual withdrawal requests that may be undergoing review.
BitMart’s wind-down sets an August withdrawal target In its July 26 wind-down notice, BitMart said it would gradually stop new registrations, deposits and new trading activity. Futures accounts entered reduce-only mode, while copy trading, grid trading, API trading and other automated services began to be discontinued.
BitMart says all spot, futures and other trading services will end at 01:00 UTC on August 26. It advises users to close positions before that time and submit withdrawal requests before 05:00 UTC the same day.
The company plans to cease platform operations at 15:59 UTC on January 31, 2027. It says users will then have a specified further period to log in, review account records and submit withdrawal requests under the procedures then in place.
As we reported when BitMart announced the wind-down, the August deadline is the practical date that matters most to active users.
The account dispute does not resolve withdrawal reviews BitMart’s claim that its Chinese-language account was compromised challenges the source of the allegations. It does not by itself establish the status of any individual withdrawal request.
The official wind-down notice says requests may undergo identity, device, IP-address, withdrawal-address, source-of-funds and other compliance reviews. Processing times can vary by asset, blockchain conditions, verification status and the volume of requests.
BitMart also states that submitting a withdrawal request does not mean the review is complete or that assets have been sent on-chain.
Lee’s responses address the claim that the account was compromised, but they do not give users a public timetable for pending withdrawal reviews.
Methodology: The article is based on BitMart’s official wind-down notice, the disputed post from its Chinese-language X account and Sheldon Lee’s public X responses. Allegations made in the disputed post have not been independently verified.
Author
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 5,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
A five-point ultimatum posted from BitMart’s official Chinese-language account gave Sheldon Xia two days to disclose wallets and pay staff, and he answered by promising a police report.
BitMart's Own X Account Demands Proof of Reserves by Aug. 19, Founder Calls It a Hack
Posted August 17, 2026 at 5:45 pm EST.
BitMart’s Chinese-language X account published a five-point open letter on Monday demanding that founder Sheldon Xia and a woman the letter identifies as his partner, Nancy Li, account for customer funds by August 19, disclose the exchange’s wallets, assets, liabilities and usable reserves, and pay employees their outstanding wages. Xia answered within hours in a post on X, written in Chinese, that the claims were “fabricated rumors.”
The letter, written in the name of BitMart users and employees, said many customers still cannot withdraw and that staff have not received their final month’s salary or the compensation they are owed. It asked who ordered the withdrawal restrictions, when management first knew the platform could not process them normally, and whether the company kept encouraging deposits after that point. It also asked for a repayment plan setting out remaining assets, total liabilities, a recovery percentage, a payout order, start and finish dates, and acceptance of an independent audit.
Xia said he would “file a police report and send a lawyer’s letter to X, demanding technical and data forensics.” “Employee assets are not prioritized over client assets,” he wrote in the same post. He later added in a post that “this Chinese official account has been hacked and is not posted by the current employee.”
Nine Days Until Trading Stops BitMart said on July 26 that it would wind down after nine years, and began phasing out new registrations and deposits the same day. Trading ends at 01:00 UTC on August 26, withdrawal requests are due four hours later, and the platform closes for good on January 31, 2027. The company said in its notice that certain withdrawal requests “may be subject to further review in accordance with applicable laws and regulations.”
An Arkham-labeled BitMart wallet has seen balances sliding toward $36 million from about $70 million since that announcement.
An Earlier Denial Xia posted in Chinese on X on August 8 that “We have not misappropriated any assets,” said the core team was taking inventory of what remained, and said BitMart was considering bringing in courts and independent third-party auditors to produce a transparent report. No wallet addresses, reserve figures or repayment timeline have followed.
The exchange lost roughly $196 million to a hot wallet breach in December 2021. On-chain investigator ZachXBT publicly challenged Xia to act rather than post: “If you actually have the liquidity then simply return the funds to everyone instead of posting vague statements?”
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AI-assisted content: This article was produced with the assistance of AI tools and was reviewed, edited, and fact-checked by a member of the Unchained editorial team before publication.
BitMart account demands founder explain funds status, Xia calls claims ‘fabricated’BitMart’s official Chinese-language X account has publicly demanded that founder Sheldon Xia explain the whereabouts of user funds and produce a repayment plan.
It said some users were unable to withdraw funds and some employees have not received their final salary or compensation and threatened Xia that if he does not provide a verifiable asset disclosure and repayment plan by the deadline, it would continue to submit evidence to regulators, law enforcement, lawyers and the media.
Xia called the claims in the post “fabricated rumors” and promised a counter-attack.
“We have collected full evidence of the content on X, all of which is fabricated rumors. During daytime US time, we will file a police report and send a lawyer’s letter to X, demanding technical and data forensics,” Xia said.
Binance bStocks pass xStocks as second-largest tokenized stock issuerBinance bStocks have overtaken xStocks to become the second-largest tokenized stock issuer by value less than two months after launch.
BStocks reached about $624 million on Aug. 3, surpassing xStocks at roughly $579 million but trailing Ondo Finance at about $927 million, according to Token Terminal data.
The issuer landscape has shifted sharply as the tokenized stock market has grown. A year earlier, xStocks led with $40.7 million, followed by Robinhood at $37.2 million, while Ondo held about $65,000. The total value tracked by Token Terminal has since surged from roughly $80 million to about $2.7 billion.
NORTH KOREA
Inside the fake crypto startup that fooled North Korean IT workersSuspected North Korean IT workers joined a fake crypto startup — without realizing their every move was being tracked to extract valuable intel. Cointelegraph came along for the ride.
Suspected DPRK IT workers pitch for venture capital backing from the fictitious Definitive Communications, played by Cointelegraph. Source: ANY.RUN
ISRAEL
Israel’s largest bank taps Galaxy to offer Bitcoin, Ether, Solana tradingIsrael’s Bank Leumi will become the first local bank to offer crypto trading, after partnering with Galaxy Digital to let customers trade Bitcoin, Ether and Solana through the bank’s investment platform from early 2027.
The companies said Friday that customers of Leumi and Pepper, its mobile banking arm, will be able to buy, hold and sell the three cryptocurrencies through a dedicated section of the Leumi Trade app.
JAPAN
Metaplanet CEO shuts down Bitcoin sale speculation after $322M transferMetaplanet CEO Simon Gerovich has shut down speculation that the Japanese Bitcoin treasury company is selling its holdings after the company transferred 5,014 BTC ($322 million) over a 24-hour span last week.
“This was a routine custody operation. No Bitcoin was sold, and our holdings remain 43,000 BTC,” Gerovich said.
Metaplanet is the third-largest publicly traded Bitcoin treasury company and the largest in Asia. According to Arkham data, it is sitting on an unrealized loss of about $1.4 billion.
MUFG PoC to bring Japanese government bond repo transactions onchainFour MUFG companies plan to bring Japanese government bond repo transactions onchain using the Canton Network, as part of a new proof of concept (PoC).
The companies said they seek to improve operational efficiency through automation of the transaction lifecycle, enable real-time intraday settlement 24/7, as well as enhance funding and capital efficiency.
SINGAPORE
Singapore introduces mandatory tax reportingSingapore has finalized regulations that require crypto firms to report user transactions to the tax department. The rules implement the OECD’s Crypto-Asset Reporting Framework into Singapore domestic law and take effect from January 1, 2027 for new users, while existing users can tarry until December 31, 2027.
Singapore. Source: Pexels
Binance and RedotPay stoush heats upBinance and RedotPay are disputing whether a Singapore case related to their nearly $473 million Hong Kong legal battle is coming to an end. The stablecoin payments card issuer told Cointelegraph it expects Binance to discontinue the Singapore proceedings and will seek legal costs.
Binance said that’s not going to happen and it “is not abandoning its claims and has informed both the court and RedotPay accordingly.”
The plaintiffs previously alleged in a Hong Kong court that RedotPay diverted more than 470,000 Binance Card users by allowing Binance Pay funds to be used for stablecoin card top-ups outside the terms of a commercial agreement.
Meanwhile RedotPay’s US IPO has reportedly been delayed as it seeks regulatory approvals.
KOREA
Shinhan Asset Management partners with Plume on tokenized fund pilotSouth Korea’s Shinhan Asset Management signed a memorandum of understanding (MOU) with tokenization-focused blockchain network Plume to develop a proof of concept for a Korean won-denominated tokenized fund.
The pilot is intended to test the overseas use of won-denominated financial products in onchain markets that have largely developed around dollar-denominated assets.
HONG KONG
HashKey begins beta distribution of Hong Kong-regulated HKDAP stablecoinThe Standard Chartered-led Anchorpoint Financial has started to rollout the first regulated Hong Kong dollar backed stablecoin called HKDAP. HashKey Exchange will be an authorized distributor, potentially expanding access to the fiat-backed asset as the territory’s stablecoin market takes shape. Retail access will be limited initially, with the focus on institutions.
Meanwhile, the Securities and Futures Commission reportedly identified 65 fraudulent websites impersonating HashKey.
Cointelegraph publishes long-form journalism, analysis and narrative reporting produced by Cointelegraph’s in-house editorial team with subject-matter expertise. All articles are edited and reviewed by Cointelegraph editors in line with our editorial standards. Some articles contain affiliate links, from which Cointelegraph may earn a commission. These relationships do not influence which products we review or our editorial conclusions. Content published in here does not constitute financial, legal or investment advice. Readers should conduct their own research and consult qualified professionals where appropriate. Cointelegraph maintains full editorial independence.
BitMart’s official Chinese-language X account has publicly demanded that founder Sheldon Xia explain the whereabouts of user funds and produce a repayment plan by Wednesday.
The account said in a Monday post that some users remained unable to withdraw funds and that some employees had not received their final salary or compensation, while calling on Xia to disclose BitMart’s wallets, assets, liabilities and available reserves, according to a machine translation of the post.
The post said if Xia does not provide a verifiable asset disclosure and repayment plan by the deadline, it would continue to submit evidence to regulators, law enforcement, lawyers and the media.
It was unclear who authored Monday’s post or whether the account remained under the company’s control. Cointelegraph contacted BitMart for comment but did not immediately receive a response.
BitMart announced on July 26 that it would wind down its exchange as its BMX token plunged and users reported withdrawal delays. The company said trading on the platform will end on Aug. 26 and operations will cease on Jan. 31.
The exchange has stopped accepting new deposits and registrations as part of the shutdown and warned that some withdrawals could face additional compliance and security reviews.
Claims on official account called “fabricated”Xia responded in an X post on Monday, calling the claims in the post “fabricated rumors” and saying evidence had been preserved, according to a machine translation.
“We have collected full evidence of the content on X, all of which is fabricated rumors. During daytime US time, we will file a police report and send a lawyer’s letter to X, demanding technical and data forensics,” Xia said.
Xia also said employees were not being prioritized over customers in the handling of assets, adding that “everyone is a client” and there were no privileges.
He previously denied that BitMart had misappropriated user assets. On Aug. 8, Xia told users not to believe unverified claims or screenshots purportedly provided by current or former employees.
Wallets attributed to BitMart by Arkham held about $36.5 million in crypto assets as of Monday, down from roughly $71 million on July 26 and $102 million on July 6.
The tracked wallets may not represent all assets controlled by BitMart, and it is unclear how much of the decline reflects customer withdrawals, asset consolidation or transfers to other wallets.
This is a developing story.
Hodler’s Digest: Data of 54,000 wallet users leaked, CLARITY odds just 10%
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Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
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According to Iran's Fars News Agency, Iran has seized an oil tanker owned by the United Arab Emirates in the Strait of Hormuz.
36 minutes ago
US crypto-related stocks rallied during intraday trading, with Strategy climbing 4.74% and its ticker STRC rising to $94.94.
According to market data from BIT (bit.com), U.S. crypto-linked stocks strengthened during intraday trading. Highlights: Strategy (MSTR) rose 4.74%; the firm did not add to its Bitcoin holdings last week, instead selling $334 million worth of stock, pushing its U.S. dollar reserves to $4.8 billion. Strategy’s perpetual preferred stock (STRC) gained 0.17% to hit $94.94. Other gainers included Coinbase (COIN), up 1.64%; Circle (CRCL), up 4.2%; BitMine Immersion (BMNR), up 4.3%; and SharpLink Gaming (SBET), up 2.64%.
36 minutes ago
Nike’s stock price has fallen to its lowest level since September 2014, with its market capitalization shrinking by 78% from its all-time high.
According to market data from BIT (bit.com), Nike’s (NIKE) stock price dropped more than 4% intraday today, falling below the $40 threshold to hit its lowest level since September 2014. It has shed 78% of its value compared to its 2021 all-time high, with its market capitalization now plummeting by over $200 billion. The main causes of the slump include the former CEO’s over-reliance on direct-to-consumer channels, which led to lost wholesale shelf space, stagnant product innovation, and market share being seized by rivals such as Hoka, On, Anta, and Li-Ning, as well as sharp consecutive quarterly declines in the Chinese market that have eroded investor confidence in Nike’s ability to resume growth.
36 minutes ago
A rift has emerged in the US-Israel alliance, with Trump saying Israel should halt its attacks on Gaza.
US President Donald Trump said Israel should not strike targets in the Gaza Strip. Meanwhile, Trump’s special envoy Jared Kushner met with Israeli Prime Minister Benjamin Netanyahu on Monday in an attempt to salvage a plan aimed at disarming Hamas and ending the Gaza war. As leaders of two close allies, the US and Israel’s heads of state have publicly diverged in a rare show of disagreement. Last week, Netanyahu rejected Trump’s proposal calling for the phased disarmament of Hamas. After a brief pause, Israel has resumed nearly daily strikes against Palestinian militants. In an interview with Fox News today, Trump stated that Israel should not carry out these attacks, as Hamas has agreed to lay down its weapons.
36 minutes ago
Meme Coin News Flash: The theatrical run of the film "Niu Lai" has officially wrapped up, with overall screenings significantly reduced, and its box office exceeding 15 million RMB.
Director Xin Yumeng of Chinese domestic abstract animated film *Niu Lai* publicly responded, confirming the film's theatrical run has officially ended. He thanked audiences for their concern and discussions, acknowledged the work has many shortcomings, and noted the experience was very valuable for the team. The production company of *Niu Lai* is based in Dalian, which earlier pulled all screenings over "concerns about affecting the city's image". However, local reports today say some cinemas in Dalian have resumed showings. The earlier nationwide online rumor that "no new screenings will be added starting August 17" has not been officially confirmed. Most cities still screened the film normally on August 16, but following the director's confirmation of the end of its theatrical run, overall screenings have shrunk significantly. At the box office, the film's revenue surged from an initial several thousand yuan and continued to climb, breaking through 15 million RMB as of tonight, ranking 7th on the 2026 Chinese domestic animated film box office chart, with the official releasing a celebratory announcement. Per GMGN data, the meme coin *Niu Lai* on BNB Chain remains actively traded. Its market cap once hit a new high of $49.2 million, then fell back to $36 million after failing to break through the $50 million mark, marking a 26% short-term correction, 142% 24-hour gain, and $37.5 million in 24-hour trading volume. BlockBeats reminds users that meme coins mostly have no practical use cases, with high price volatility, so investment requires caution.
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BitMart founder Sheldon Xia says he plans to involve law enforcement and pursue data forensics after employees confronted management over unpaid salaries. The move marks a sharp escalation in what has become an increasingly messy shutdown of the centralized crypto exchange, which announced its wind-down on July 26.
BitMart’s closure was never going to be smooth. The Cayman Islands-registered exchange halted new user registrations immediately when it announced the shutdown, with spot and futures trading set to end by August 26 and full operations winding down by January 31, 2027.
But the timeline has been overshadowed by a cascade of complaints. Users have reported delayed withdrawals. Former employees say they can’t access funds or collect unpaid wages. A Hungarian firm has lodged a police complaint over roughly $80,000 in frozen assets.
On August 8, Xia publicly denied any misappropriation of funds, stating that his core team is conducting an asset inventory and processing withdrawal requests. The denial came amid growing online chatter questioning whether BitMart has the assets to make users whole.
BitMart’s credibility problems didn’t start with this shutdown. The exchange suffered a devastating security breach in December 2021, losing an estimated $150 million to $196 million from its hot wallets. At the time, Xia committed to compensating affected users, a promise that helped the platform survive but left lingering questions about its financial health.
Founded by Xia in 2017 and operational since 2018, BitMart positioned itself as a mid-tier exchange catering to a global audience, particularly among smaller altcoin traders looking for listings that larger platforms wouldn’t touch.
The decision to escalate the employee salary dispute to police is unusual. In most corporate wind-downs, unpaid wages are a liability the company acknowledges and negotiates. Threatening to report your own employees to law enforcement for raising the issue suggests either that Xia believes the claims are fraudulent, or that he’s attempting to control the narrative during a period of intense scrutiny.
The forensics angle likely means examining internal communications, access logs, and potentially blockchain transaction records to determine whether employees made claims that don’t match the company’s records.
The January 2027 final closure date gives BitMart roughly six months to sort through its obligations. In that time, Xia will need to process outstanding withdrawals, resolve employee disputes, and address frozen funds complaints from external parties. The $80,000 Hungarian complaint alone could trigger jurisdictional complications that extend well beyond the planned shutdown timeline.
For the over 300 users per hour still submitting withdrawal requests, none of Xia’s legal maneuvering against employees changes the fundamental question: is their money still there, and will they get it back before the lights go out for good.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.
Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.
BitMart founder Sheldon posted a statement noting that BitMart’s Chinese official account has been hacked, and the content posted there was not published by current employees.
BitMart’s official Chinese-language X account has publicly demanded that founder Sheldon Xia explain the whereabouts of user funds and produce a repayment plan by Wednesday.
The account said in a Monday post that some users remained unable to withdraw funds and that some employees had not received their final salary or compensation, while calling on Xia to disclose BitMart’s wallets, assets, liabilities and available reserves, according to a machine translation of the post.
The post said if Xia does not provide a verifiable asset disclosure and repayment plan by the deadline, it would continue to submit evidence to regulators, law enforcement, lawyers and the media.
It was unclear who authored Monday’s post or whether the account remained under the company’s control. Cointelegraph contacted BitMart for comment but did not immediately receive a response.
BitMart announced on July 26 that it would wind down its exchange as its BMX token plunged and users reported withdrawal delays. The company said trading on the platform will end on Aug. 26 and operations will cease on Jan. 31.
The exchange has stopped accepting new deposits and registrations as part of the shutdown and warned that some withdrawals could face additional compliance and security reviews.
Claims on official account called “fabricated”Xia responded in an X post on Monday, calling the claims in the post “fabricated rumors” and saying evidence had been preserved, according to a machine translation.
“We have collected full evidence of the content on X, all of which is fabricated rumors. During daytime US time, we will file a police report and send a lawyer’s letter to X, demanding technical and data forensics,” Xia said.
Xia also said employees were not being prioritized over customers in the handling of assets, adding that “everyone is a client” and there were no privileges.
He previously denied that BitMart had misappropriated user assets. On Aug. 8, Xia told users not to believe unverified claims or screenshots purportedly provided by current or former employees.
Wallets attributed to BitMart by Arkham held about $36.5 million in crypto assets as of Monday, down from roughly $71 million on July 26 and $102 million on July 6.
The tracked wallets may not represent all assets controlled by BitMart, and it is unclear how much of the decline reflects customer withdrawals, asset consolidation or transfers to other wallets.
This is a developing story.
Hodler’s Digest: Data of 54,000 wallet users leaked, CLARITY odds just 10%
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
BitMart employees have taken control of the exchange’s Chinese official X account to publicly confront founder Sheldon Xia.
They are demanding transparent answers on the BitMart withdrawal freeze, unpaid salaries, and the fate of locked user funds by August 19, 2026, or they will escalate to regulators and law enforcement worldwide.
From Orderly Wind-Down to Open Revolt: What Triggered the Ultimatum The crisis began on July 26, 2026, when BitMart announced a cessation of its trading platform. New registrations, deposits, and order placements were suspended immediately.
All spot and futures trading was set to end on August 26, 2026. Full platform operations would close on January 31, 2027. The native BMX token dropped roughly 58% within 24 hours of that announcement.
Users quickly discovered the BitMart withdrawal freeze was far worse than disclosed. Requests sat in pending status or showed as completed with no on-chain hash.
On-chain tracker Lookonchain noted only approximately 58 wallets withdrew a combined $805,000 in the first 24 hours after the announcement.
That figure included an 8-hour window with zero withdrawals processed. Projects such as OpenGradient and Scandic Coin went public with reports of stuck balances and unprocessed requests.
This is not the first time trust in BitMart has been tested. In December 2021, hackers exploited a stolen private key to drain approximately $196 million from the exchange’s Ethereum and Binance Smart Chain hot wallets.
PeckShield first flagged those outflows. CEO Sheldon Xia confirmed the breach and promised compensation from company funds.
The BitMart withdrawal freeze of 2026 revives the same fundamental question: can users trust the platform’s word on fund safety?
On August 8, Xia broke his silence, insisting the platform had not and would not run away, and that assets were being inventoried.
He mentioned the possibility of independent auditors but offered no proof of reserves, concrete figures, or repayment timeline.
Separately, global CEO Nathan Chow stated he was terminated around July 24 and learned of the wind-down publicly, claiming no role in the decision.
The compliance pressure mounting on exchanges at this period extends beyond BitMart. As Bitget Restricts HTX, EXMO and Other Entities Amid Sanctions Crackdown.
Mid-tier platforms facing operational stress are now under sharper regulatory scrutiny across the industry. Investor confidence in unaudited platforms is eroding quickly.
Five-Point Demand and What It Means for BitMart Holders On August 17, the BitMart Chinese official account (@BitMart_zh) published an open letter directly addressing Xia and his partner Nancy Li.
The letter appeared in English shortly after in the same thread. It states that ordinary users still cannot access their funds and many employees have not received final pay.
The situation, the letter argues, is not a routine commercial closure. People’s life savings and basic livelihoods are at stake.
The letter issues five specific demands with a response deadline of August 19. First, verifiable evidence of where user assets are, including public wallet addresses, total liabilities, and usable liquid reserves.
Second, a clear explanation of why the BitMart withdrawal freeze occurred, who decided it, and whether management kept accepting deposits after knowing normal processing was impossible.
Third, full disclosure of any related companies, trusts, or accounts linked to Li that allegedly held tens of millions with batch withdrawal records.
Fourth, immediate payment of outstanding employee salaries. Fifth, a concrete, independently audited repayment plan with timelines and a supervision mechanism.
The letter warns that failure to respond will result in submission of evidence and fund trails to regulators, law enforcement, lawyers, and media worldwide.
It tags @cz_binance, @justinsuntron, @brian_armstrong, @VitalikButerin, @zachxbt, and @lookonchain, among others.
For investors, this episode reinforces a lesson that has echoed since the FTX collapse in 2022. Platforms without independently audited proof of reserves covering both assets and liabilities carry real counterparty risk.
This risk is highest during wind-downs when liquid reserves matter most.
As Binance Founder CZ Notes the Mounting Reality Facing Crypto Wealth, where assets are custodied matters as much as what those assets are worth.
Holders with balances on BitMart face deep execution and recovery uncertainty. BMX remains highly speculative.
See our full comparison of crypto copy trading platforms for hands-off investing.
