BitMart reveals massive shortfall tied to 2021 hack and moves toward court-supervised wind-down

Crypto exchange BitMart has admitted it lacks enough assets to repay all users and is preparing a court-approved restructuring plan. The core issue traces back to a 2021 breach that wiped out $319.5 million in reserves, including $164.1 million in Ethereum, $96.5 million in BNB and $51.5 million in Bitcoin.

The platform initially survived on rising trading volumes, but mounting losses from fee rebates, futures trading and large-scale withdrawals in 2026 forced its hand. On July 26 it announced a phased shutdown, with trading halted by late August.

Under the preliminary plan, remaining balances will be converted to USD equivalents using a weighted average price. Clients will then choose among three recovery options. The exchange aims to file for court approval by December 2026 or January 2027 after consulting major account holders.

Based on information from cryptonews.net