BitMart shutdown: ETH exits wallets as exchange halts sign-ups

BitMart will wind down after nine years of operation, stopping new registrations, deposits and orders at 01:30 UTC on July 26 and ending spot, futures and other trading at 01:00 UTC on Aug. 26 before formally ceasing operations on Jan. 31, 2027. The reversal lands weeks after BitMart had signaled growth, including a June Australian Financial Services License and a roughly 256% period-over-period jump in first-half assets under management at its asset-management unit. The exchange attributed the decision to an assessment of operating conditions, market environment and strategic direction, without identifying a specific financial, regulatory or operational trigger.

Why it matters

The shutdown is colliding with a withdrawal process that has already drawn complaints from both users and listed projects. On-chain analytics firm Nansen said much of the ETH and stablecoin balance in the wallets it tracks for BitMart was transferred out in the days before the closure notice, leaving the exchange's Ethereum reserves increasingly dominated by less-liquid tokens. Lookonchain reported only 58 wallets withdrew about $805,000 in the 24 hours following the announcement, including an eight-hour stretch during which BitMart processed no withdrawals at all, and Onchain Lens said it tracked no Bitcoin, stablecoin or altcoin withdrawals above $25,000 over a similar window. Paxi Network publicly demanded the immediate release of funds it says belong to its users and market makers, and BitMart has not publicly responded. The exchange's wind-down procedures warn that withdrawals may face additional KYC, IP, destination-wallet, source-of-funds and Travel Rule reviews, and that submitting a request does not mean the assets have been sent. BitMart has not provided a maximum processing window for an approved withdrawal.

Market impact

The closure arrives days after BitMEX announced its own Sept. 23 shutdown, a coincidence that is reviving scrutiny of centralized-exchange counterparty risk in a bear market. Chicago Fed researchers estimated FTX customers withdrew $7.81 billion, around 37% of customer funds, in the run before its bankruptcy, while Voyager saw outflows of roughly 39%. JPMorgan described the FTX fallout as a broader confidence crisis at the time, and proof-of-reserves disclosures became the industry's response. BitMart told users in May it was preparing such a disclosure after earlier withdrawal and reserve questions, but has not yet published one.