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BitMart weighs restructuring, but withdrawals remain unresolved
BitMart is scheduled to stop spot and other trading services at 01:00 UTC on Aug. 26, with customers strongly encouraged to submit withdrawal requests by 05:00 UTC that day.
BitMart is exploring a restructuring that could allow parts of the crypto exchange to resume operations as customers continue reporting difficulties withdrawing assets, even as the company has not removed its planned trading shutdown timetable. On Aug. 21, the exchange said a potential restructuring plan could include a phased resumption of some services alongside distributions to creditors, pending additional legal, financial, operational and regulatory review, and that it expects an update by Sept. 9.
BitMart appointed White & Case as restructuring counsel. The exchange is scheduled to discontinue spot, futures and other trading services at 01:00 UTC on Aug. 26, and it has strongly encouraged users to submit withdrawal requests before 05:00 UTC that day, while stating the time is a recommendation rather than a hard cutoff.
The deadline is landing amid growing scrutiny from customers who say withdrawal requests have been frozen, delayed or left unresolved. Some customers have demanded verifiable information about BitMart’s reserves and a clear repayment plan, while former employees have alleged unpaid salaries.
BitMart CEO Sheldon Lee rejected broader accusations as fabricated rumors, according to CryptoSlate. However, blockchain investigator ZachXBT questioned why the exchange has not returned customer funds if it has sufficient liquidity, and BitMart has not disclosed a comprehensive repayment framework, recovery percentage, or timetable for resolving outstanding withdrawals, which may be subject to identity, security, source-of-funds, sanctions and other compliance checks.