BitMart Shutdown Follows Years of Security Breaches, Regulatory Warnings and Customer Disputes

BitMart’s decision to wind down its cryptocurrency exchange marks the end of one of the industry’s longest-running trading platforms after years of security breaches, regulatory scrutiny and customer disputes that repeatedly tested confidence in the business.

The exchange announced Saturday that it will begin an “orderly wind-down” of its trading platform, halting new registrations, deposits and trading in phases before ceasing operations on Jan. 31, 2027. BitMart did not cite a specific reason for the closure, saying only that the decision followed “a careful evaluation of the Company’s operating conditions, market environment, and future strategic direction.”

The announcement came two days after Nenter Chow, BitMart’s former global chief executive, said he had been removed from the role and was no longer involved in company decisions. In a public statement, Chow said he “was not involved in the decision announced today, not consulted on it, and not informed of it,” adding that he learned of the shutdown only after it became public.

BitMart Plans Six-Month Wind-Down

Under the timetable published by the company, BitMart began suspending new user registrations and deposits on July 26 while placing futures accounts into reduce-only mode and stopping new spot trading orders.

The exchange said all spot and futures trading will end on Aug. 26. Services including staking, lending, launchpad offerings and other investment products will also be discontinued in stages.

BitMart said users should complete identity verification, close trading positions and submit withdrawal requests before the recommended deadlines. It warned that some withdrawals could undergo additional compliance reviews, including Know Your Customer checks, source-of-funds verification, sanctions screening and Travel Rule requirements.

“BitMart remains committed to managing this wind-down process in a responsible, orderly, and transparent manner,” the company said.

Shutdown Caps Years of Security Incidents

The closure follows a series of high-profile security incidents stretching back several years.

In December 2021, BitMart disclosed that hackers had stolen roughly $200 million in cryptocurrency after compromising one of its hot wallets, one of the largest exchange breaches at the time. The company later said it would use its own funds to reimburse affected customers.

Earlier that year, BitMart also suspended trading of several tokens following reported blockchain attacks affecting projects listed on the platform.

Those incidents added to earlier customer complaints over frozen withdrawals and account access, issues that periodically resurfaced during periods of market volatility.

Regulatory Pressure Mounted Across Multiple Jurisdictions

BitMart also faced increasing regulatory scrutiny.

Financial regulators in several jurisdictions issued warnings regarding the exchange’s operations over the past few years, while the company withdrew from certain European markets as crypto licensing requirements tightened.

The platform was also mentioned in investigations involving market manipulation allegations surrounding certain listed digital assets, although BitMart itself was not accused of criminal wrongdoing in those cases.

The growing compliance burden coincided with stricter global oversight of cryptocurrency exchanges following a series of industry failures.

Former CEO Distances Himself From Closure

Shortly after the shutdown announcement, Chow publicly distanced himself from the decision.

“Since July 24 I have had no role in the management or decision-making of the company and have not been consulted on any operational matters,” he wrote.

“My concern is for BitMart’s users and its employees,” Chow added, urging customers to rely only on official BitMart communications regarding withdrawals and account access.

The statement followed his disclosure that the company had informed him on July 24 that his employment as global chief executive had been terminated.

Users Urged to Withdraw Assets

BitMart said withdrawals remain available during the wind-down but acknowledged that processing times could increase because of heightened demand and additional compliance reviews.

The company advised users not to submit duplicate withdrawal requests and warned against scams impersonating BitMart staff during the closure process.

“There are no paid priority withdrawal services or expedited processing channels,” the exchange said, adding that it would never request passwords, authentication codes or private wallet keys through messaging applications.

Although trading will cease in August, BitMart said customers will continue to have temporary access to their accounts after platform operations officially end in January 2027 in order to review records and submit any remaining withdrawal requests under procedures that will be announced later.