BitMart hires White & Case; withdrawals remain unresolved

BitMart has engaged law firm White & Case to explore a restructuring that could allow parts of the crypto exchange to resume operations while unresolved customer withdrawal requests persist and a scheduled trading shutdown approaches.

The proposal does not include a repayment plan, a projected recovery percentage or a timetable for processing outstanding withdrawals. BitMart said the potential restructuring could involve a phased resumption of some services alongside distributions to creditors, but any plan would require additional legal, financial, operational and regulatory review.

The exchange remains on an immediate timetable to end spot, futures and other trading services at 01:00 UTC on Aug. 26. Users were strongly encouraged to submit withdrawal requests before 05:00 UTC that day; the company framed that time as a recommendation rather than a hard cutoff. Requests filed after the recommended time will be handled under a separate procedure, with further instructions to be provided.

BitMart has not specified which services would return under a phased restart, when any services might resume or what regulatory approvals would be needed. The company also made clear that withdrawal requests may be subject to identity, security, source-of-funds, sanctions and other compliance checks.

Potential distributions from a restructuring would be separate from ordinary withdrawal requests and have not been defined. The exchange has appointed White & Case as restructuring counsel and expects to provide another public update by Sept. 9.

Former employees have alleged unpaid salaries. Chief Executive Officer Sheldon Lee dismissed broader accusations aimed at the company as “fabricated rumors.” Blockchain investigator ZachXBT questioned why customer funds would not be returned if liquidity were sufficient, adding pressure for BitMart to disclose verifiable information about reserves and its financial position.

Customers continue to press for access to assets as the shutdown date nears. The process for handling late withdrawal requests and any creditor distributions has not been detailed by the exchange.