BitMart Closure Triggers Withdrawal Delays and On-Chain Panic
BitMart, a nine-year-old cryptocurrency exchange, has abruptly announced its closure and is now facing withdrawal delays and on-chain panic.
The shutdown comes as a surprise, especially considering BitMart's recent expansion push, which included securing an Australian Financial Services License in June and reporting a 256% increase in assets under management for the first half of the year.
However, users are now struggling to withdraw their funds from the exchange, with some projects complaining about delayed or stuck withdrawals. Paxi Network called on BitMart to immediately release funds belonging to its users and market makers, stating that delays were already causing financial damage.
BitMart has attributed the closure to an assessment of its operating conditions, market environment, and future strategic direction, without specifying a particular financial, regulatory, or operational event. The exchange is urging customers to complete identity verification and close all trading positions before August 26, 2026, and submit withdrawal requests by the same date.
The company may also examine customers' source of funds and trading history, conduct sanctions and Travel Rule checks, and request proof of address or ownership of the receiving wallet. This has left users dependent on BitMart completing potentially lengthy reviews while the platform is being dismantled.