BitMart has officially acknowledged a shortfall in assets and proposed a preliminary restructuring plan. The exchange attributes its financial difficulties primarily to a 2021 hack that resulted in losses of $319.5 million. According to the company, this figure includes $164.1 million in Ethereum, $96.5 million in BNB, $51.5 million in Bitcoin, and $7.4 million in other assets.
The platform reported declining revenue from trading fees and listings, alongside losses in its futures business throughout 2026. BitMart noted that arbitrage traders exploited commission rebate programs, while social media activity triggered mass withdrawals starting in May. The exchange rejected a $10 million liquidity injection offer, deeming it insufficient to cover the deficit.
The proposed plan involves converting account balances into USD based on weighted average token prices from July 26. A court-appointed expert will evaluate claims, and users will be offered three repayment options. BitMart plans to consult with its 50 largest clients before seeking court approval for the final restructuring plan in December 2026 or January 2027.
BitMart announced its phased closure on July 26 after nine years of operations, with trading ceasing on August 26. The company has engaged White & Case as legal counsel and Alvarez & Marsal as financial advisors to manage the restructuring process. Founder Sheldon Xia previously denied allegations of asset misappropriation, citing ongoing inventory and consolidation efforts.
