BitMart Discloses $319.5M Hack Losses and User Recovery Plan
BitMart proposes liquid distributions and two recovery tokens after acknowledging a hack-linked deficit, with repayment estimates and court approval still pending.
Key Notes
- BitMart links its deficit to hack losses valued at $319.5 million in December 2021.
- Customers could choose liquid distributions or two recovery tokens.
- Court approval and estimated repayment percentages remain pending.
BitMart has acknowledged a balance-sheet deficit tied to its December 2021 hack and proposed three recovery options for customers with unpaid balances. The exchange’s plan would offer a partial upfront distribution or tokens linked to assets that may be recovered or sold over time.
Its September 30 announcement values the depleted digital-asset reserves at approximately $319.5 million, using prices from December 4, 2021. That historical valuation should not be read as a newly audited figure for the exchange’s current shortfall.
— BitMart (@BitMartExchange) September 30, 2026
Three Options for Unpaid User Balances
The proposal would let customers choose one option or combine several. The alternatives involve different sources of repayment, and BitMart has not yet published the expected recovery percentage for each.
Customers seeking an earlier exit would receive a proportionate share of available liquid assets. The proposed pool includes fiat money, USDT, USDC, PYUSD, Bitcoin, Ether and Solana. This is a proposed distribution under the plan, rather than an announcement that unrestricted withdrawals have resumed.
Customers could exchange their balances for a token tied to recoveries from the 2021 hack. Its eventual payout would depend on recovering stolen assets, so receiving the token would not itself mean the underlying money had been returned.
This continuum token would be backed by BitMart’s investments and proceeds from selling illiquid assets. It could also receive a share of future distributable profits if the business secures enough funding to restart. Both a restart and future profits remain conditional.
Trading Losses and Withdrawals Deepened the Strain
Management says the exchange became loss-making in 2026 as revenue from trading and token listings weakened. It also attributes part of the deterioration to groups exploiting futures rebates and zero-slippage incentives, alongside panic withdrawals. These explanations are the company’s account of its financial difficulties.
BitMart said it considered an investor’s public proposal to inject $10 million but judged that amount insufficient to resolve the operating pressures and balance-sheet deficit. The announcement does not describe a completed rescue investment.
From Wind-Down to a Possible Restructuring
The proposal follows BitMart’s July 26 wind-down notice, which set out restrictions on deposits, registrations and new orders. That notice scheduled the discontinuation of trading services for August 26 and a wider platform shutdown for January 31, 2027.
A subsequent restructuring update introduced the possibility of resuming some operations alongside creditor distributions, subject to legal, financial and regulatory assessments. BitMart named White & Case as its restructuring counsel.
The exchange later appointed Alvarez & Marsal to assess its financial position and available options. In that notice, BitMart acknowledged withdrawal restrictions and said financial information required independent verification before disclosure.
CoinScreamer’s earlier coverage of Storj’s restructuring also noted BitMart’s planned wind-down. The latest proposal sets out how BitMart now hopes to address outstanding customer claims while leaving a possible business restart open.
Court Applications Targeted for December or January
BitMart plans to consult its 50 largest users by balance over the next three to four weeks and disclose estimated recovery rates. Its indicative timetable places consultations in October, revisions in November, and applications to the relevant courts in December 2026 or January 2027.
The court process is therefore still ahead. The announcement does not establish approved repayment terms, a final election deadline or a guaranteed date for distributions.
The company’s official feedback portal collects concerns for BitMart and its advisers. Its published terms distinguish that consultation channel from withdrawal processing: submitting feedback does not itself change an account’s status or release assets.
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