BitMart Proposes Three Recovery Paths in Court-Supervised Restructuring

BitMart has proposed a court-supervised restructuring with three recovery options for users, as the exchange works to address a balance-sheet shortfall valued at about $319.5 million using Dec. 4, 2021, asset prices.

The proposal would convert unpaid account balances into U.S. dollar values using weighted average trading prices from July 26, 2026, through a designated record time. Users could choose an initial distribution in fiat currency, stablecoins or cryptocurrencies including Bitcoin (BTC), Ether (ETH) and Solana (SOL).

Two other options would defer recovery. A recovery token would give users a share in efforts to reclaim assets stolen in a December 2021 hack. A continuation token could be traded on decentralized exchanges and would link holders to investment interests, sales of illiquid assets and future project profit distributions.

BitMart began reviewing its balance sheet in August. The exchange also said social media attacks beginning in May prompted panic withdrawals and exposed people connected to it to personal data leaks. Its management team assessed a proposed $10 million liquidity package from an investor and concluded it would not cover operating pressure and the shortfall.

Over the next three to four weeks, BitMart plans to consult its 50 largest users by account balance, then update stakeholders after considering their feedback.