BitMart Proposes Repayment Plan for $319.5M Hack Victims
BitMart, a cryptocurrency exchange that has been shutting down its trading platform since July 26, has published its first formal restructuring proposal to repay more than 12 million users with locked accounts. The exchange attributes the deficit to a December 2021 hack, which is now valued at $319.5 million, far above the $150 million reported at the time.
The affected users will be able to choose between an immediate payment in liquid assets, a token tied to hack recovery, or a token backed by exchange assets. The proposal outlines a complex process for calculating each account balance and verifying its accuracy through a court-appointed officer.
BitMart is working with restructuring firm Alvarez & Marsal and law firm White & Case on the proposal, which calls for consultations with top users over the coming weeks, general feedback in October, revisions in November, and a court filing in December or January. Meanwhile, investment firm Echo Base has submitted a competing proposal, but claims BitMart never responded.