# BitMart restructuring efforts and financial advisory updates > Live situation record from CLSTR: https://clstr.news/situations/bitmart-exchange-shutdown > Updated: 2026-09-09T09:13:17.000Z. Sources: 64. Developments: 8. In late July 2026, BitMart announced an orderly wind‑down of its cryptocurrency exchange. New user registrations, deposits, and order placement were halted on 26 July, with spot and futures trading scheduled to stop on 26 August. The platform is slated for formal closure on 31 January 2027. The native BMX token fell significantly following the announcement, and withdrawal processing has been heavily delayed due to manual AML/KYC compliance checks. On 17 August, the situation escalated when BitMart’s official Chinese X account appeared to be hacked. The account issued an ultimatum to Sheldon Xia and Li Yi, demanding a verifiable disclosure of assets, liabilities, and reserves by 19 August, while alleging that employees had not received final salaries. Xia dismissed these posts as ‘fabricated rumors’. By late August, BitMart shifted focus toward a potential restructuring plan as an alternative to total liquidation. This proposal involves a phased resumption of certain operations alongside an asset distribution process for creditors. To facilitate this, the exchange appointed legal advisors White & Case and Weil, Gotshal & Manges. On 9 September, BitMart appointed financial advisory firm Alvarez & Marsal to assist with the restructuring and evaluate the company’s financial position. A&M is tasked with helping arrange ‘orderly withdrawals’ and supporting a near-term action plan. While the organization Echo Base called the appointment ‘the most encouraging step BitMart has taken since July’, critics noted the update lacked a specific reserve position, asset inventory, or a definitive withdrawal timetable. BitMart plans to launch a web portal for user feedback and intends to appoint an independent third party for operational oversight. ## Claims - The BitMart Chinese X account demanded that founder Sheldon Xia and partner Yi Li provide an explanation regarding user funds and unpaid wages. (corroborated by 5 sources) - BitMart stopped accepting new registrations, deposits and new orders on 26 July 2026 at 01:30 UTC. (corroborated by 4 sources) - The account alleged that several employees have not received their final month of salary or owed compensation. (corroborated by 4 sources) - An ultimatum was issued requiring a response or repayment plan by August 19. (corroborated by 4 sources) - BitMart will end all spot and futures trading on 26 August 2026 at 01:00 UTC. (corroborated by 3 sources) - BitMart will fully cease platform operations on 31 January 2027 at 15:59 UTC. (corroborated by 3 sources) - BitMart said the shutdown follows a careful evaluation of its operating conditions, market environment and future strategic direction. (corroborated by 3 sources) - The account requested a disclosure of BitMart's wallets, assets, liabilities, and available reserves. (corroborated by 3 sources) - Founder Sheldon Xia denied the allegations, claiming the Chinese X account was hacked and the information was fabricated. (corroborated by 3 sources) - BitMart’s native token BMX fell about 60 % within 24 hours of the shutdown announcement and later lost roughly 85 % of its pre‑announcement value. (corroborated by 2 sources) - BitMart warned that withdrawals could be delayed due to enhanced identity, device, sanctions and source‑of‑fund checks. (corroborated by 2 sources) - BitMEX announced its own shutdown a few days before BitMart’s announcement, signalling a broader consolidation of centralized crypto exchanges. (corroborated by 2 sources) ## Timeline ### 2026-09-09: BitMart appoints Alvarez & Marsal as financial adviser BitMart has appointed Alvarez & Marsal as a financial adviser to assess its assets and help facilitate orderly withdrawals, though it failed to release a specific restructuring roadmap by its September 9 goal. 3 sources. https://clstr.news/cluster/bitmart-appoints-alvarez-marsal-as-financial-adviser ### 2026-08-23: BitMart explores restructuring plan as alternative to full shutdown BitMart is considering a restructuring plan and a partial relaunch of its operations as an alternative to its previously announced complete shutdown. 5 sources. https://clstr.news/cluster/bitmart-explores-restructuring-plan-as-alternative-to-full-shutdown ### 2026-08-21: BitMart considers restructuring plan instead of total liquidation Cryptocurrency exchange BitMart is exploring a restructuring plan to avoid total liquidation, aiming to resume some operations and distribute assets to creditors by September 9. 6 sources. https://clstr.news/cluster/bitmart-considers-restructuring-plan-instead-of-total-liquidation ### 2026-08-17: BitMart founder faces demands for fund disclosure and unpaid wages BitMart's Chinese X account has demanded founder Sheldon Xia disclose user funds and unpaid wages by August 19, amid claims of frozen withdrawals. Xia denies the allegations, citing a hack and fabricated rumors 7 sources. https://clstr.news/cluster/bitmart-founder-denies-hacking-claims-amid-user-withdrawal-issues ### 2026-08-10: BitMart faces insolvency claims amid frozen withdrawals BitMart faces insolvency claims after an OpenGradient co-founder reported frozen withdrawals during the exchange's phased shutdown of global operations. 2 sources. https://clstr.news/cluster/bitmart-faces-insolvency-claims-amid-frozen-withdrawals ### 2026-07-29: BitMart Withdrawal Delays Persist as Exchange Winds Down Operations BitMart’s wind‑down leaves users facing delayed withdrawals amid compliance checks, echoing BitMEX’s closure and sparking renewed focus on Proof of Reserves in crypto exchanges. 3 sources. https://clstr.news/cluster/bitmart-withdrawal-delays-persist-as-exchange-winds-down-operations ### 2026-07-27: BitMart to Cease Trading and Shut Down Platform by January 2027 BitMart will halt registrations on 26 July 2026, end all trading on 26 August 2026 and close completely on 31 January 2027, citing market conditions; its BMX token fell ~60‑85% and users face withdrawal delays. 16 sources. https://clstr.news/cluster/bitmart-exchange-shuts-down-after-nine-years-sparking-withdrawal-delays ### 2026-07-25: BitMart Exchange to Shut Down by Jan 2027, BMX Token Plummets BitMart will halt trading on 26 Aug 2026 and close fully by 31 Jan 2027; its BMX token dropped ~60‑70 %, wallets hold $71 M (down from $102 M) and withdrawals have nearly stopped. 41 sources. https://clstr.news/cluster/bitmart-exchange-shuts-down-as-bmx-token-drops-over-60 --- Cite as: BitMart restructuring efforts and financial advisory updates. CLSTR, https://clstr.news/situations/bitmart-exchange-shutdown