Crypto exchange BitMart has presented a preliminary plan to address its financial problems and settle outstanding user balances. The proposal matters because the company has acknowledged a balance shortfall of nearly $319.5 million, which it attributed in part to its December 2021 hack and a subsequent deterioration in financial performance.

BitMart plans to consult users on the proposal in October 2026. It expects to apply to the relevant courts for approval in December 2026 or January 2027.

The proposal follows BitMart’s announcement of a phased shutdown of its trading platform, after which users encountered withdrawal problems. In September, the company appointed Alvarez & Marsal as financial adviser to assess its assets and prepare its next steps.

BitMart outlines causes of financial problems

BitMart said the crypto market downturn in 2026, declining revenue and futures-trading losses worsened its financial position. According to the company, groups engaged in wash trading exploited certain rebate programs and zero-slippage features, hurting the exchange’s profitability.

The company also cited the balance shortfall stemming from its December 2021 hack. BitMart estimated that about $319.5 million in digital assets was lost, comprising:

• Bitcoin: $51.5 million
• Ethereum: $164.1 million
• BNB: $96.5 million
• Other assets: $7.4 million

Since May 2026, BitMart has also faced what it described as social media attacks by wash-trading groups that triggered panic withdrawals. The company separately cited the risk that employees’ personal data could be leaked.

BitMart considered a proposal from a digital-asset investor to raise $10 million, but management concluded that the amount would be insufficient to address its liquidity problems and balance shortfall.

Users offered three recovery options

Under the preliminary proposal, unsettled user balances would be converted into a dollar equivalent using the volume-weighted average price of the relevant tokens from July 26, 2026, until a specified point in time. An independent court-appointed representative would calculate and verify the amounts.

Users would then be able to select one option or combine three alternatives:

• Immediate payout: Users would receive a pro-rata share of available liquid assets, including fiat, USDC, PYUSD, USDT, bitcoin, Ethereum and Solana.
• Restitution token: The token would be linked to funds that BitMart may recover as the investigation into the 2021 hack continues. The exchange said recent private forensic investigations had identified assets that may be held on centralized exchanges.
• Continuum token: The token would be backed by BitMart’s investments and future proceeds from sales of illiquid assets. If sufficient funding is secured to restart the business, it would also be backed by a portion of future profits from the exchange’s projects.

BitMart plans to consult the 50 largest users by funds held over the next three to four weeks. The company is also preparing a report setting out projected returns under each option.

After BitMart announced the platform’s closure, its situation began drawing comparisons with the bankrupt FTX exchange.

Source: Incrypted