BitMart Eyes Phased Restart Amid Withdrawal Chaos

BitMart, the embattled cryptocurrency exchange, is exploring a potential restructuring that could allow parts of its operations to resume. This comes after the exchange announced last month it would wind down completely due to financial difficulties.

The proposed plan involves a phased resumption of services alongside distributions to creditors, subject to further review by legal, financial, operational, and regulatory experts. BitMart has appointed White & Case as restructuring counsel and expects to provide an update by September 9.

However, the exchange's immediate plans remain unchanged: it will discontinue trading services on August 26 at 01:00 UTC, with users encouraged to submit withdrawal requests before 05:00 UTC that day. This has left customers frustrated, as many have reported difficulties withdrawing their assets.

ZachXBT, a blockchain investigator, has questioned why BitMart hasn't simply returned customer funds if it has sufficient liquidity to meet withdrawals, adding pressure on the exchange for greater transparency around its financial position.