BitMart, the crypto exchange that announced plans to shut down less than a month ago, is now weighing a restart with creditor payouts. The reversal follows intensive discussions with users, stakeholders and advisers.
The company appointed White & Case as restructuring counsel, signaling a serious assessment of available options. BitMart plans to release a detailed roadmap for potential restart by Sept. 9, contingent on legal, financial and regulatory reviews across multiple jurisdictions.
A restart hinges on further community consultations. BitMart urged users to rely exclusively on official communication channels to avoid scam attempts targeting its user base.
Users have faced significant withdrawal difficulties since August. Former BitMart employees have publicly alleged unpaid wages.
Founder Sheldon Xia rejected the wage and withdrawal claims as "fabricated rumors" but has not disclosed the exchange's current reserve figures or provided a specific timeline for resolving reported problems.
The restructuring effort stems from internal leadership conflict. Global CEO Nenter Chow said BitMart removed him on July 24—two days before the exchange publicly announced its wind-down. The timing underscores the internal turmoil preceding the shutdown announcement.
BitMart suffered a $196 million security breach in 2021 when attackers exploited a vulnerability in its hot wallet private key. That hack, combined with recent withdrawal problems and leadership disputes, presents a substantial challenge as the exchange attempts to rebuild trust.
