BitMart reverses shutdown decision, explores restructuring and potential reopening

Crypto exchange BitMart has reversed its July 26, 2026, decision to permanently shut down, announcing on August 21, 2026, that it is exploring a restructuring plan. The exchange has hired White & Case as restructuring counsel and plans to combine a phased restart of specific operations with distributions to creditors. This shift comes amid severe user complaints regarding frozen withdrawals, a public dispute over unpaid staff wages on a hijacked X account, and a 58% crash in its native BMX token.

BitMart restructuring exploration

• ▪The restructuring exploration follows BitMart's July 26, 2026, announcement that it would wind down operations, halt new registrations, and close the platform entirely by January 31, 2027
• ▪BitMart announced on August 21, 2026, that it is exploring a potential restructuring and business resumption plan that may include a phased restart of specific operations
• ▪BitMart appointed the law firm White & Case as its restructuring counsel and promised to provide a detailed roadmap by September 9, 2026

Creditor distribution signals

• ▪BitMart's potential restructuring plan includes making distributions to creditors alongside the phased resumption of its exchange operations
• ▪BitMart's original July 26, 2026, shutdown notice cited operating conditions, the market environment, and future strategy without mentioning creditors or financial distress
• ▪BitMart's native BMX token fell approximately 58% within 24 hours of the July 26, 2026, shutdown announcement, extending its year-to-date decline to 83%

Withdrawal freeze complaints

• ▪BitMart users reported facing withdrawal delays, blocked accounts, and extra compliance and security checks despite the exchange's promise to keep withdrawals open
• ▪BitMart founder Sheldon Xia posted on August 8, 2026, that the exchange has not run away, but he did not provide reserve figures or a proof of reserves report
• ▪A co-founder of OpenGradient stated on August 10, 2026, that his market-making team was unable to withdraw their funds from BitMart

2021 security breach

• ▪BitMart pledged to repay the victims of the December 2021 hack, but users reported weeks later that the promised funds had not arrived
• ▪Hackers stole approximately $150 million to $196 million from BitMart hot wallets in a security breach in December 2021

Staff account hijacking incident

• ▪Individuals claiming to be BitMart employees took control of the exchange's Chinese X account on August 17, 2026, demanding unpaid wages and a workable repayment plan
• ▪BitMart founder Sheldon Xia rejected the hijacked X posts as fabricated, claiming the account was compromised and that customer assets take priority over employee claims

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