BitMart Shutdown Raises Insolvency Concerns Amid Frozen Balances

BitMart, one of the longest-running centralized exchanges in the crypto industry, is facing a new insolvency claim amidst its multi-stage shutdown. The exchange halted new registrations and deposits on July 26 and plans to stop all trading by August 26, with a full platform closure scheduled for January 31, 2027.

The insolvency claim comes from Matthew, a co-founder of OpenGradient, who says his team's balances are frozen on BitMart. He alleges that the exchange is insolvent and that it encouraged token holders to lock funds roughly one week before halting these services.

BitMart has not released reserve figures or a repayment schedule, fueling user concerns about the exchange's financial stability. The exchange maintains that withdrawals remain open throughout the process but says requests can take time due to identity checks and other security procedures.