BitMart Insolvency Claim Surfaces as Withdrawals Freeze and Shutdown Looms

BitMart, one of the crypto industry’s longer-running centralized exchanges, is now facing a fresh insolvency claim just as it works through a multi-stage shutdown that has already frozen new deposits, spooked token holders and triggered a wave of withdrawal complaints. The accusation comes from a co-founder of OpenGradient, whose market-making team says it cannot pull its own balances off the platform — a claim that, if accurate, would deepen concerns already swirling around the exchange’s wind-down.

Key takeaways

• An OpenGradient co-founder alleges BitMart is insolvent after his market-making team’s funds got stuck on the platform, though the claim has not been independently verified.
• BitMart began a phased shutdown on July 26, halting new registrations and deposits, with all trading set to stop by 01:00 UTC on Aug. 26 and full platform closure scheduled for Jan. 31, 2027.
• Scandic Coin says roughly 21,898 USDT and 926,635 SNC submitted for withdrawal on July 26 remain unprocessed.
• Founder Sheldon Xia says BitMart has “not run away” and “will not run away,” but has not released reserve figures or a repayment schedule.
• US users tied to older accounts were told to withdraw remaining crypto by Aug. 8, 2026, at 23:59 UTC or risk facing further account restrictions.

Insolvency Claims Surface Amid Withdrawal Freeze

The insolvency claim against BitMart originated from a social media post rather than a regulatory filing, and it centers on frozen assets a market maker says it cannot access. That distinction matters — unverified allegations move fast in crypto, but they don’t automatically confirm a platform’s finances are broken.

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