BitMart stopped all trading on 26 August 2026 and now says it is short $319.5 million of customer assets. The Cayman Islands exchange blames a December 2021 hack it never fully covered. On 30 September 2026 it proposed a court-supervised repayment plan that no court has yet approved.
Is BitMart Still Operating?
Only partly. Trading ended on 26 August 2026, but the platform has not closed and BitMart has not announced bankruptcy or insolvency proceedings.
BitMart’s own wind-down notice set 31 January 2027 as the date it formally ceases trading-platform operations, with login and withdrawal access continuing for a period afterwards. Withdrawals were restricted rather than halted outright.
As of 28 October 2026, the most recent public development is the restructuring proposal the company published on 30 September 2026. No approved payout has followed it.
Why Did BitMart Shut Down?
BitMart cited “operating conditions, market environment, and future strategic direction” and identified no specific trigger.
That explanation changed shape twice. The company announced an orderly wind-down on 26 July 2026, then said on 21 August that it was developing a restructuring plan as an alternative to closing entirely, appointing the law firm White & Case as restructuring counsel.
The clearer reason arrived on 30 September 2026, when BitMart acknowledged a balance-sheet shortfall and tied it to the 2021 breach. The exchange announced its closure three days after BitMEX said it would shut down, though the two cases differ: BitMEX closed while stating its assets exceeded its liabilities.
How Big Is the BitMart Shortfall?
BitMart puts the gap at $319.5 million, valued at December 2021 prices, and attributes it mainly to the hack that drained its hot wallets that month.
| Asset | Shortfall |
|---|---|
| Ethereum | About $164.1 million |
| BNB | About $96.5 million |
| Bitcoin | About $51.5 million |
| Other assets | About $7.4 million |
| Total | About $319.5 million |
This figure is not comparable with the numbers reported in 2021. BitMart first described losses of about $150 million; the security firm PeckShield estimated closer to $200 million, and Elliptic’s analysis put the theft above $225 million.
What Happened to the Compensation BitMart Promised in 2021?
It was never completed, and the same loss now sits on the company’s balance sheet as a shortfall.
After the breach on 4 December 2021, BitMart chief executive Sheldon Xia said the company would use its own funding to cover the incident and compensate affected users. The exchange stated at the time that no user assets would be harmed, and said deposits and withdrawals would be restored gradually from 7 December 2021.
Nearly five years later, BitMart’s own restructuring proposal treats that loss as unresolved. The 2021 pledge to absorb the hack internally has been replaced by a plan under which users would recover a portion of their balances, with the rest depending on tokens whose value is not yet established.
What Is BitMart Offering Users Now?
The 30 September proposal sets out three recovery routes, and it is a proposal rather than a payout schedule.
- A pro-rata distribution: a proportional share of BitMart’s liquid assets, potentially paid in fiat currency, stablecoins, Bitcoin, Ether or Solana. What share of claims this would cover has not been stated.
- A restitution token: a token backed by whatever BitMart manages to recover from the 2021 hack.
- A continuum token: a token intended to trade on decentralised exchanges, drawing value from BitMart’s investment assets, sales of illiquid holdings and any future profits.
Claims would be converted to dollar values using weighted average trading prices referenced to 26 July 2026. That detail matters to claimants: price movements after that date would not be captured in the amount claimed. An independent, court-appointed expert would assess claims.
BitMart has engaged Alvarez & Marsal as consultants alongside White & Case. The company planned consultations with its 50 largest account holders through October, revisions in November, and a court application in December 2026 or January 2027. For comparison, the creditor distributions at FTX began only after a completed bankruptcy process.
Who Is Pushing Back?
A group of BitMart customers with frozen funds has organised a committee and says the exchange ignored a rescue offer.
The investment firm Echo Base announced an ad hoc committee of BitMart claimholders on 2 September 2026. Echo Base said it had offered up to $10 million on 6 August to sponsor a pre-negotiated bankruptcy filing and received no response. The committee retained two law firms and said it was weighing legal, regulatory and insolvency options.
Questions have also been raised about the company’s conduct and governance. BitMart’s founder denied asset misappropriation and denied withdrawing funds, in a statement reported on 9 August 2026. Separately, the exchange terminated the employment of its global chief executive, Nenter Nathan Chow, on 24 July 2026; according to reporting by The Block, Chow said he played no role in the wind-down decision and learned of it when it became public.
A proof-of-reserves report that BitMart promised in May 2026 had not been published as of late October 2026.
Key Dates in the BitMart Wind-Down
- 4 December 2021: Attackers drain BitMart hot wallets on Ethereum and BNB Smart Chain after a private key is stolen.
- 24 July 2026: BitMart terminates the employment of global chief executive Nenter Nathan Chow.
- 26 July 2026, 01:30 UTC: New registrations, deposits and new trading orders stop; futures accounts move to reduce-only.
- 6 August 2026: Echo Base makes a $10 million offer to sponsor a pre-negotiated bankruptcy filing, which it says went unanswered.
- 21 August 2026: BitMart says it is developing a restructuring plan instead of a full wind-down.
- 26 August 2026: All spot and derivatives trading ends.
- 2 September 2026: Echo Base announces an ad hoc claimholder committee.
- 30 September 2026: BitMart admits a $319.5 million shortfall and proposes three recovery options.
- 31 January 2027, 15:59 UTC: The scheduled date for formal cessation of trading-platform operations.
Frequently Asked Questions
Is BitMart Shutting Down for Good?
Its notice sets 31 January 2027 as the date it formally ceases trading-platform operations. Trading already ended on 26 August 2026, but login and withdrawal access are set to continue for a period after the January date.
Can BitMart Users Still Withdraw Funds?
Withdrawals remain open but restricted. BitMart said requests may face extended checks covering identity verification, login devices, IP addresses, destination wallets, source of funds and sanctions screening, and it has not published a maximum processing time.
How Much Does BitMart Say It Owes Users?
About $319.5 million, measured at December 2021 prices. The company breaks that down as roughly $164.1 million in Ethereum, $96.5 million in BNB, $51.5 million in Bitcoin and $7.4 million in other assets.
Has BitMart Filed for Bankruptcy?
No. BitMart has not announced bankruptcy or insolvency proceedings. Its proposal anticipates a court application in December 2026 or January 2027.
Why Does the Date of 26 July 2026 Matter to Claimants?
Under the proposal, account balances would be converted into dollar amounts using weighted average trading prices referenced to that date, so later price movements would not change the size of a claim.
