BitMart has released a preliminary plan to repay users, more than two months after the crypto exchange began winding down its trading platform, and said it wants the proposal sanctioned by a court.
Under the plan published Wednesday, each user account would be converted into a single dollar figure based on the weighted average trading prices of the tokens held from July 26 to a record date that has not yet been set. Those balances would be valued by a court-appointed officer, according to BitMart.
Three recovery routes, with mixing allowed
Users would be able to choose one of three paths, or combine them.
Upfront payout
Users who want to exit immediately would receive a pro rata share of BitMart’s liquid assets. The exchange said those assets include fiat, stablecoins such as USDC, PYUSD and USDT, as well as bitcoin, ether and solana.
Restitution Token
Each dollar of user balance would convert into one Restitution Token. BitMart said the token would be backed by whatever value it recovers from its December 2021 hack. The exchange added that its latest private forensic reports identified certain pockets of value held with certain centralized exchanges.
Continuum Token
The Continuum Token would trade on decentralized exchanges. BitMart said it would be backed by the company’s investments, proceeds from sales of hard-to-sell assets including private equity stakes and altcoins, and a portion of future profits if BitMart is able to raise money and restart the business.
The exchange said it is drafting a report that will estimate the percentage return available under each route. Over the next three to four weeks, it plans to consult the 50 users holding the most value on the platform.
How BitMart describes the shortfall
BitMart said the 2021 hack drained about $319.5 million from its reserves, valued as of Dec. 4, 2021. That total included roughly $164.1 million in ether and $96.5 million in BNB, leaving a hole in the exchange’s balance sheet.
At the same time, BitMart said profits generated during the bull market allowed it to keep serving users for years after the incident.
The exchange also pointed to a weaker crypto market in 2026 and to wash-trading groups that it said exploited rebate and zero-slippage incentives in its futures business, pushing the company into losses.
In its announcement, BitMart said social media attacks by those groups since May triggered a wave of panic withdrawals.
BitMart also said it had considered a public offer from an unnamed digital asset investor to inject $10 million, but wrote that the amount is "manifestly insufficient" to solve the difficulties it faces.
What comes next
BitMart said it plans to gather feedback through October, revise the plan in November, and apply to the courts in December or January.
Alvarez & Marsal and White & Case are advising on the process.
The exchange has acknowledged restricting withdrawals. Separately, a group of claimholders organized by distressed-asset firm Echo Base has been weighing whether to push BitMart into involuntary bankruptcy.