BitMart wind-down sparks withdrawal delays after ETH exits

BitMart announced an immediate wind-down of its trading platform on July 26, stopping new registrations, deposits and orders at 01:30 UTC. The exchange plans to end spot, futures and other trading at 01:00 UTC on Aug. 26 and to cease operations on Jan. 31, 2027. Customers were asked to complete identity verification, close positions before Aug. 26 and submit withdrawal requests before 05:00 UTC that day. The company attributed the decision to an assessment of operating conditions, the market environment and its strategic direction.

On-chain data shows large transfers of ETH and stablecoins out of wallets tracked for BitMart in the days before the announcement. Those tracked wallets now hold smaller balances of ETH and stablecoins and a larger share of less-liquid tokens.

Blockchain tracking recorded limited visible outflows after the shutdown notice. One dataset identified 58 wallets withdrawing about $805,000 in the 24 hours after the announcement and noted an eight-hour interval with no processed withdrawals. Another dataset showed no Bitcoin, stablecoin or altcoin withdrawals above $25,000 over a 24-hour window. Several projects report they cannot retrieve funds from the exchange. Paxi Network demanded immediate release of funds it described as belonging to users and market makers, writing “These funds do not belong to BitMart” and requesting a timeline for returning outstanding balances. BitMart has not publicly responded to that request.

BitMart notified customers that some withdrawals may undergo manual reviews covering identity verification, login devices, IP addresses, destination wallets and blockchain transaction risks. The exchange added it may examine source of funds, trading history, sanctions and Travel Rule checks and could request proof of address, source of funds or ownership of the receiving wallet. BitMart warned that high withdrawal volumes, additional documentation, blockchain congestion and compliance checks could lengthen processing times and emphasized that submitting a withdrawal request does not mean assets have been sent on-chain. The company has not provided a maximum processing time for approved withdrawals.

In the week before the shutdown, BitMart discontinued its Spot Margin service and suspended an Automated Market Making bot. In June the firm obtained an Australian Financial Services License, and its asset-management arm reported roughly a 256% increase in assets under management in the first half of the year versus the prior period. In May the exchange acknowledged earlier allegations that some users could not withdraw funds after account restrictions affected 239 linked accounts identified by its risk-control system and announced it was preparing a proof-of-reserves disclosure.

The withdrawal difficulties come while another long-running crypto venue announced a planned shutdown. Historical cases show withdrawal freezes preceded bankruptcies at other firms: researchers at the Federal Reserve Bank of Chicago estimated that one exchange’s customers withdrew about $7.81 billion, roughly 37% of customer funds, during the run before its bankruptcy, and another venue lost almost 39% of customer funds during its run.

BitMart has stated it is not facing a liquidity shortage.