BitMart is talking about reopening before it has answered the withdrawal question

BitMart is exploring a restructuring that could allow parts of the crypto exchange to resume operations, offering an alternative to the full wind-down announced last month as customers continue to report difficulties withdrawing their assets.

On Aug. 21, the exchange said a potential restructuring plan could include a phased resumption of some services alongside distributions to creditors, subject to further legal, financial, operational and regulatory review.

BitMart has appointed White & Case as restructuring counsel and said it expects to provide another update by Sept. 9.

Still, this new proposal does not change the exchange’s immediate timetable.

BitMart is scheduled to discontinue spot, futures and other trading services at 01:00 UTC on Aug. 26. Users have also been strongly encouraged to submit withdrawal requests before 05:00 UTC that day, though the exchange has said the latter is a recommended time rather than a hard cutoff.

The deadline comes as BitMart faces growing scrutiny from customers who say withdrawal requests have been frozen, delayed or left unresolved.

Some users have demanded verifiable information about the exchange’s reserves and a clear repayment plan, while former employees have also alleged that salaries remain unpaid. BitMart Chief Executive Officer Sheldon Lee has rejected broader accusations against the exchange as “fabricated rumors.”

However, blockchain investigator ZachXBT has also questioned why BitMart has not simply returned customer funds if it has sufficient liquidity to meet withdrawals, adding to pressure on the exchange to provide greater transparency around its financial position.

BitMart has not disclosed a comprehensive repayment framework, recovery percentage or timetable for resolving outstanding customer withdrawals.

The exchange has said withdrawal requests may be subject to identity, security, source-of-funds, sanctions and other compliance checks. Requests submitted after the recommended Aug. 26 time will move to a separate processing procedure, with further instructions to be provided.

The restructuring proposal could eventually create another path for creditors, but those potential distributions are separate from ordinary withdrawal requests and remain undefined.

BitMart has also not said which services could return under a phased restart, when they might resume, or what regulatory approvals would be required.

That leaves the exchange trying to preserve a path back to operations while customers still face an imminent shutdown timetable and unresolved questions over when they will regain access to their funds.

The post BitMart is talking about reopening before it has answered the withdrawal question appeared first on CryptoSlate.