BitMart Misses Restructuring Deadline, Names Alvarez & Marsal as Adviser

Crypto exchange BitMart is reconsidering plans to wind down through a full liquidation less than a month after announcing its shutdown. A restructuring could preserve parts of the business while establishing a process for returning assets and paying creditors, making the outcome important for customers seeking access to funds. The proposal will also test whether the platform can restore operations and confidence after its abrupt closure.

BitMart said it is actively developing a potential restructuring plan and has appointed White & Case as legal counsel. The exchange is considering a phased restart of selected operations alongside asset distributions and creditor repayments. It pledged to publish an updated roadmap by September 9, but has not disclosed the total assets available for distribution, expected recovery rates or a firm date for resuming services.

Crypto exchange BitMart had presented restructuring and an orderly wind-down as a path through its operational difficulties, but reports of withdrawal restrictions, unpaid wages and limited reserve transparency have raised doubts about its solvency. The dispute became more serious after the company’s official Chinese-language account appeared to turn against management, amplifying concerns over whether BitMart can repay customers and meet payroll obligations.

The account, suspected of being controlled by employees, demanded that founder Sheldon Xia disclose asset reserves, explain blocked withdrawals and resolve unpaid salaries by August 19. Reports said about $10 million in user assets had been frozen and that nearly all rank-and-file employees were owed wages. Xia rejected calls for an independent audit and described the allegations as “fabricated rumors,” leaving BitMart’s repayment capacity and planned wind-down under scrutiny.