BitMart Admits Insolvency and Offers Compensation Options

Cryptocurrency exchange BitMart has officially declared insolvency. The company's financial situation has critically deteriorated against the backdrop of a balance sheet deficit and mass withdrawals by users.

The liquidity shortfall amounted to approximately $319.5 million. This sum resulted from a hack of the platform in 2021. In 2026, the company became unprofitable, which intensified pressure on its financial stability.

Exchange management rejected an investor's offer to contribute $10 million, deeming it insufficient to cover obligations. Consequently, three options for settling debts were offered to users.

The first option involves immediate payment of a portion of funds from available liquid assets. The second option includes converting balances into Restitution Tokens to await the return of assets lost in the 2021 hack. The third option offers Continuum Tokens, backed by the company's investments and illiquid assets.

• Receiving part of funds immediately from USDT, USDC, BTC, ETH, and SOL
• Converting balance into Restitution Token with expectation of recovery
• Receiving Continuum Token with the right to claim future profits upon business restart

The proposed plan requires court approval. Over the next three to four weeks, BitMart intends to discuss details with its fifty largest users. Afterward, the company will disclose the expected repayment percentage for each of the proposed options.