BitMart Withdrawals Slowing as Exchange Prepares for Wind-Down

BitMart's withdrawal process has slowed down significantly following its announcement to wind down operations. According to blockchain analytics account Lookonchain, only 58 wallets withdrew around $805,000 in a 24-hour period.

This is a sharp decline from previous days when withdrawals were reportedly being processed at a faster pace. The exchange had warned that requests may face additional compliance and security checks, including reviews of customer identities, login devices, withdrawal addresses, trading histories, and sources of funds.

The exchange's ability to return customer funds smoothly will be a key test of its promised 'orderly' wind-down and could determine whether declining confidence develops into a broader rush for the exits. BitMart token BMX has continued to decline in value, falling around 81.5% over seven days to trade near $0.057.

Binance co-founder Changpeng Zhao weighed in on the situation, stating that acquiring a centralized exchange is more complicated than buying other businesses due to potential security vulnerabilities and backdoors left by previous teams.