BitMart Exchange — Insolvency Claims and Frozen Withdrawals (August 2026)

2021-12-04

BitMart hot-wallet hack; approximately $150M–$196M in cryptocurrency stolen via stolen private key from Ethereum and BSC wallets. Founder pledged company-funded user compensation.

2022-08-10

FTC issues civil subpoenas to BitMart operators investigating handling of 2021 hack and consumer representations about asset security — one of the FTC's first formal crypto probes.

2025-04-01

Nenter 'Nathan' Chow appointed as BitMart's global CEO; founder Sheldon Xia moves to group president role.

2026-05-22

BitMart acknowledges withdrawal restrictions affecting 239 user accounts flagged for subsidy exploitation. Exchange announces a proof-of-reserves report is in preparation but provides no release date.

2026-06-01

BitMart secures Australian Financial Services Licence; global CEO Chow outlines expansion plans for prediction markets and tokenized assets.

2026-07-06

Arkham Intelligence tracking shows BitMart wallets hold approximately $102 million in crypto assets.

2026-07-01

AscendEX announces immediate closure, reportedly after losing MiCA authorization in the EU — first of three major exchange closures in July 2026.

2026-07-23

BitMEX announces start of its own wind-down process, with full operations to end September 23, 2026.

2026-07-24

Global CEO Nenter Chow informed his employment is terminated; not consulted on pending wind-down decision.

2026-07-26

BitMart publicly announces orderly wind-down at 01:30 UTC, immediately halting new registrations, deposits, spot orders, and moving futures to reduce-only mode. BMX token falls approximately 58% within 24 hours.

2026-07-27

Arkham data shows BitMart tracked wallets have fallen to approximately $69–71 million — down from $102 million on July 6. Lookonchain reports only 58 wallets withdrew approximately $805,000 in a 24-hour period, with an eight-hour window showing zero withdrawals.

2026-07-29

Multiple users publicly report frozen or delayed withdrawals, including Scandic Coin's report of approximately 21,898 USDT and 926,635 SNC stuck since July 26.

2026-08-08

Founder Sheldon Xia makes first public statement since wind-down announcement, asserting the platform 'had not fled and would not do so,' denying misappropriation, citing internal asset inventory, and raising the possibility of third-party audits — but providing no financial proof or repayment timeline.

2026-08-10

OpenGradient co-founder Matthew Wang alleges publicly that BitMart is insolvent, stating his market-making team cannot withdraw assets. Wang also alleges BitMart promoted a locked savings product the week before announcing its shutdown in what he characterized as 'a play for liquidity.'

2026-08-17

BitMart tracked wallet balances fall to approximately $36.5 million — down from $71 million on July 26, a decline of roughly 49% over the wind-down period. An open letter on the BitMart Chinese-language X account sets an August 19 deadline for Sheldon Xia to disclose reserves, explain withdrawal restrictions, and publish a repayment plan, threatening multi-jurisdictional regulatory escalation. Xia dismisses the letter as fabricated.