BitMart has acknowledged a significant asset shortfall affecting its user settlements, revealing a preliminary recovery plan following a major hack in 2021 that led to a loss of $319.5 million. The exchange's difficulties have been compounded by declining trading revenues and increased fund withdrawals since May, driven by social media activity.
The proposed recovery plan, which is pending court approval, includes converting user account balances into a dollar equivalent based on a weighted average price of tokens. Users will have three options for asset recovery:
- Proportional Share of Liquid Assets: This could involve various cryptocurrencies and fiat currencies, although the exact percentage of claims that can be satisfied remains unclear.
- Restitution Token: A token backed by funds that BitMart may recover from the aftermath of the hack, potentially including some assets identified in a recent investigation.
- Tradable Continuum Token on DEX: The value of this token will depend on BitMart's future investment performance and asset sales, alongside potential profits if operations resume.
BitMart plans to consult with its largest clients over the next few weeks and aims to finalize calculations for all users regarding their expected recovery percentage. A broader consultation is set for October, with adjustments anticipated in November and a court filing for approval expected by late 2026 or early 2027.
