BitMart withdrawal processing slows down after platform shutdown announcement
The exchange's users encountered delayed withdrawals and account freezes while BitMart-linked wallets dropped to approximately $69 million and the BMX token saw an additional 81.5% drop over seven days.
The cryptocurrency exchange BitMart appeared to experience a slowdown in withdrawal processing following its public announcement regarding plans to cease operations.
According to blockchain analytics account Lookonchain on Monday, merely 58 wallets successfully withdrew approximately $805,000 over a period exceeding 24 hours. The account further noted that the platform had failed to process any withdrawal transactions during the most recent eight-hour timeframe under observation.
Users on X platform also continued sharing accounts of withdrawal challenges. One customer reported receiving an email confirmation indicating their USDT withdrawal had been successfully completed, despite the fact that the transaction remained unprocessed and their account showed an "on-chain withdrawal freeze" status. A separate user mentioned that a $30 test withdrawal stayed in pending status for more than 30 minutes. It should be noted that these are individual user reports that could not be independently confirmed.
The exchange's capacity to process customer fund returns without complications will serve as a crucial measure of its stated "orderly" shutdown process and may influence whether diminishing trust escalates into a widespread panic-driven withdrawal rush.
BitMart has stated previously that withdrawal functionality continues to be available but cautioned that such requests might undergo extra compliance and security verification procedures, including examinations of user identities, login devices used, withdrawal addresses specified, trading activity histories and fund origins. The platform may also require customers to provide proof of identity documentation, address verification, source of funds documentation or proof of ownership for the receiving wallet address.
Cointelegraph contacted BitMart seeking comment regarding the situation but had not received any response prior to publication time.
BitMart token continues downward trajectory as exchange approaches closure
BitMart made its announcement on Sunday that it would discontinue accepting new user registrations and deposit transactions while also limiting new spot trading orders and futures position openings. The platform has scheduled the termination of all trading services for Aug. 26, with complete platform shutdown anticipated by Jan. 31, 2027.
Wallets identified by Arkham as belonging to BitMart contained approximately $69 million worth of cryptocurrency assets on Monday, representing a decrease from around $102 million on July 6.
The native BMX token of BitMart was trading at approximately $0.057 on Monday and had experienced a decline of roughly 81.5% across the seven-day period, based on data from CoinGecko. The token had been valued at around $0.31 late Friday prior to the public disclosure of the exchange's shutdown plans.
The shutdown announcement also sparked conversations regarding the possibility of larger cryptocurrency exchanges acquiring their smaller competitors.
Changpeng Zhao, co-founder of Binance, commented that purchasing a centralized exchange presents more complexity than acquiring other types of businesses due to the risk of inheriting security weaknesses, including potential backdoors that previous development teams may have left in place. He further noted that while acquisitions remain a possibility, they necessitate much more thorough due diligence and examination.