BitMart Shutdown Under Fire as Withdrawal Concerns Mount After CEO Says He Was Left Out From Decision

Crypto exchange BitMart is facing mounting scrutiny after announcing plans to shut down its trading platform, with reports of slowing withdrawals emerging just days after the company unveiled its wind-down strategy. The situation has been further complicated by statements from the exchange's global CEO, who said he was not consulted about the decision and only learned of it after it became public.

The developments have fueled uncertainty among users, triggering a sharp decline in the exchange's native token and raising fresh questions about customer fund withdrawals during the closure process.

Trading Platform to Close in Stages

BitMart said it has begun gradually suspending new user registrations, deposits, and trading activities following what it described as a review of its operating conditions, market environment, and long-term strategy.

Under the announced timeline, all spot, futures, and other trading services will end on August 26, while the platform is expected to cease operations entirely on January 31, 2027. Users will retain access to their accounts for a period after the shutdown to review account records and submit withdrawal requests.

The exchange has advised customers to close open positions and complete withdrawals before trading services are discontinued. It also warned that some withdrawal requests may be subject to enhanced compliance procedures, including identity verification, source-of-funds reviews, sanctions screening, and additional security checks.

BitMart has already started placing futures accounts into reduce-only mode while gradually discontinuing services such as copy trading, grid trading, API trading, staking, lending, Launchpad products, and BitMart Earn.

CEO Says He Was Not Involved

The shutdown announcement was quickly followed by an unexpected public statement from Nenter (Nathan) Chow, BitMart's global CEO.

In a post on X, Chow said the company informed him on July 24 that his employment was being terminated and that he was immediately removed from management responsibilities.

According to Chow, he had no involvement in the decision to wind down the exchange and was not consulted before the announcement. He said he only became aware of the shutdown after it was made public.

Chow also urged customers to rely exclusively on BitMart's official communications and follow the withdrawal instructions issued by the company, adding that his primary concern remains the interests of users and employees.

BitMart has not publicly responded to Chow's comments.

Withdrawal Delays Raise Questions

Following the shutdown announcement, users began reporting delays in withdrawing funds from the platform.

Blockchain analytics account Lookonchain said only 58 wallets had withdrawn approximately $805,000 over a 24-hour period, adding that it observed no withdrawals being processed during one eight-hour window.

Several users on X also reported delays and account restrictions. Some claimed they received notifications indicating withdrawals had been completed even though transactions had not been broadcast on-chain, while others said small test withdrawals remained pending for extended periods. These individual reports have not been independently verified.

The reported delays have intensified concerns over BitMart's ability to execute what it previously described as an orderly wind-down.

Assets Decline as BMX Token Plunges

Blockchain data suggests customer assets held by wallets attributed to BitMart have fallen in recent weeks.

According to Arkham Intelligence data, wallets linked to the exchange held approximately $69 million in crypto assets on Monday, down from roughly $102 million earlier this month.

Meanwhile, BitMart's native BMX token has suffered heavy losses since the shutdown announcement.

The token dropped nearly 60% immediately after the news became public and extended its decline to approximately 81.5% over the following week, according to CoinGecko. BMX was trading near $0.057 on Monday after changing hands around $0.31 before the closure plans were announced.

Recent Expansion Plans Make Closure Unexpected

The decision represents a sharp reversal from BitMart's recent public messaging.

Earlier this month, the exchange reported significant growth in its asset management business and outlined plans to expand its prediction markets, tokenized asset offerings, and regulatory footprint.

The company had also announced the acquisition of an Australian Financial Services Licence, describing it as part of its strategy to strengthen compliance and operational capabilities in the country.

At the time, BitMart said it served more than 13 million users across 180 countries and territories. The company has not publicly explained what prompted the subsequent decision to wind down its trading platform.

Industry Watches Customer Fund Withdrawals

The developments have renewed discussion around operational risks facing centralized cryptocurrency exchanges.

Binance co-founder Changpeng Zhao described the announcement as "tough times (again)" in a post on X, adding that the closure appeared to be an orderly wind-down.

He also commented separately that acquiring centralized exchanges can be significantly more complex than purchasing other businesses because buyers may inherit security vulnerabilities or hidden technical risks.

For now, market attention remains focused on whether BitMart can continue processing customer withdrawals efficiently during the transition.