BitMart's Withdrawal Freeze Exposes Chaos Underneath Orderly Facade
In the wake of BitMart's shutdown notice, users were promised an orderly withdrawal process. However, on-chain data revealed a vastly different story.
BitMart announced it would wind down operations entirely by January 31, 2027, with deposits suspended and new trading halted starting July 26, 2026. Withdrawals remained available throughout the six-month runway, although users could expect manual reviews, KYC checks, Travel Rule verification, and requests for additional documents.
But within hours of the announcement, users reported withdrawals marked as 'completed' with no actual on-chain transaction appearing, 'on-chain withdrawal freeze' messages, USDT withdrawals stuck in pending status, and even small test withdrawals failing to move. Lookonchain's tracking showed only 58 wallets managed to withdraw a combined $805,000 in over 24 hours following the announcement.
A coalition of large-asset users formed, reporting roughly $3.7 million stuck and unable to withdraw. The group, which included Paxi Network, publicly demanded BitMart release funds belonging to its own users and market makers, stating those assets never belonged to the exchange in the first place.