BitMart Shuts Down After 9 Years, Users Face Withdrawal Delays
In brief
- BitMart halted new registrations, deposits, and orders at 01:30 UTC on July 26
- Spot and futures trading end August 26; full platform closure scheduled January 31, 2027
- Nansen tracked ETH and stablecoin transfers out of BitMart wallets in recent days
- Blockchain data shows minimal withdrawal activity with eight-hour processing delays reported
- Paxi Network demanded immediate release of user and market-maker funds
Withdrawal Gridlock
On-chain data paints a troubling picture of user access. Nansen reported that much of the ETH and stablecoin balance held in BitMart wallets was transferred out in recent days, raising questions about reserve adequacy. Lookonchain said only 58 wallets withdrew about $805,000 over a 24-hour period following the shutdown announcement, a figure far below historical norms for an exchange of BitMart's size.
The withdrawal delays are stark. Blockchain analysis platform Lookonchain reported an eight-hour stretch in which BitMart processed no withdrawals. Onchain Lens reported a similar pattern, saying BitMart processed no Bitcoin, stablecoin or altcoin withdrawals above $25,000 over a 24-hour period.
Prior Friction
The closure didn't emerge from a vacuum. BitMart discontinued its Spot Margin service and suspended its Automated Market Making Bot earlier in the week, signaling internal contraction before the formal announcement. In May, the exchange acknowledged allegations that some users were unable to withdraw funds after account restrictions were imposed. BitMart said the restrictions primarily involved 239 linked accounts that its risk-control system identified as part of an organized effort to exploit trading subsidies.
At the time, BitMart said it was preparing a proof-of-reserves disclosure and would publish it after addressing security and risk-control considerations. That disclosure never materialized before the shutdown announcement.
The Contradiction
The timing is jarring. In June, the exchange secured an Australian Financial Services License, a regulatory milestone that typically signals expansion plans. Around the same period, its asset-management business reported that assets under management increased by about 256% period-over-period in the first half of the year.
Yet BitMart attributed the closure to an assessment of its operating conditions, market environment and future strategic direction, without citing a specific financial, regulatory, or operational trigger. The vagueness fuels user distrust.
Paxi Network called on BitMart to immediately release funds it said belong to its users and market makers. As of now, the exchange has given no timeline for completing withdrawals during the wind-down period.
