BitMart stated Friday it is developing a restructuring plan with a phased restart for some operations—a sharp reversal just five days before the exchange's August 26 deadline to halt all trading.
The platform originally published its exit plan July 26, immediately stopping new sign-ups, deposits and orders. It set a firm schedule to end all trading by August 26 and go dark entirely January 31, 2027.
BitMart's initial announcement blamed operating conditions and market dynamics for the shutdown but made no mention of financial crisis or missing funds.
The Friday update outlines a restructuring plan running "alongside distributions to creditors." The term "creditors"—individuals or entities owed money—signals deeper balance sheet problems than a simple market-driven exit would require. BitMart has retained White & Case as restructuring counsel, one of the largest insolvency practices globally. Companies engage such specialized legal help when repairs are needed, not during a general market recovery.
Traders reacted sharply to the July news. BitMart Token (BMX) crashed 46 percent overnight to around $0.11. The token now trades near $0.0626, up 6 percent following Friday's announcement.
Some analysts had embraced the July shutdown as evidence of market cleansing. Simon Dedic, founder of Moonrock Capital, suggested the business model for many exchanges had become unsustainable. Ran Neuner, chief executive of Crypto Banter, said market bottoms form when only the fittest platforms survive. Both assumed the BitMart exit was final.
Friday shattered that assumption. BitMart is now actively seeking a path to resume trading—a move that contradicts the narrative both analysts had constructed.
BitMEX, by contrast, maintains its shutdown plan. The derivatives venue still intends to close September 23 following a strategic review, ending an 11-year operational run. BitMEX has already returned staked BMEX balances, and verified accounts with lingering funds now incur a monthly charge, effectively pushing users to withdraw.
Both exchanges announced exits within three days of each other using nearly identical language about strategic reviews. Only BitMart is exploring a return.
The July shutdown notice promised withdrawal services would remain open. Many users reported withdrawals failed. Ethereum withdrawal volume spiked to a 2026 high as traders fled the platform.
By mid-August, traders reported blocked withdrawals and former staff members claimed unpaid wages. BitMart founder Sheldon Xia denied the withdrawal claims, calling them fabricated and threatening a police report. Xia provided no reserve figures or repayment timeline. Investigator ZachXBT publicly urged Xia to return funds instead of issuing statements.
BitMart has a history of security breaches. Hackers drained approximately $196 million from two of the exchange's hot wallets in December 2021, a breach initially flagged by security firm Peckshield.
