After crypto exchange BitMart revealed its intention to close down, user withdrawals have seemingly decelerated. Reports from customers about delays and account freezes have emerged concurrently with a significant drop in the exchange's wallet holdings, which now stand at approximately $69 million, and a steep 81.5% weekly plunge in the value of its native BMX token.

Withdrawal Issues Mount

Specific data has highlighted the slowdown, with blockchain analytics account Lookonchain reporting on Monday that a mere $805,000 was withdrawn by just 58 wallets over a 24-hour span. The account also noted a complete halt in withdrawal processing during the most recent eight-hour tracking period.

These analytics are supported by anecdotal evidence from users on X who described ongoing difficulties. For instance, one user claimed to have received an email confirming a completed USDT withdrawal, yet the transaction was unprocessed and their account showed an “on-chain withdrawal freeze.” In another unverified report, a user stated that a small $30 test withdrawal was still pending after more than 30 minutes.

The exchange's capacity to facilitate smooth and timely returns of customer funds represents a crucial test of its public promise to conduct an “orderly” shutdown. How BitMart handles this process may ultimately decide if the current erosion of user confidence escalates into a more widespread panic and a rush to withdraw assets.

In a prior statement, BitMart confirmed that withdrawals are still available but cautioned users that their requests might be subject to heightened security and compliance measures. These extra reviews could encompass examinations of customer identities, login devices, withdrawal addresses, and transaction histories, as well as the origins of their funds. The exchange further noted it might ask for proof of identity, address, source of funds, or even ownership documentation for the destination wallet.

Before this article was published, Cointelegraph contacted BitMart seeking comment but had not received a reply.

The Shutdown Timeline

The exchange officially announced its closure on Sunday, outlining a phased wind-down. Effective immediately, BitMart stopped taking on new user registrations and accepting deposits. It has also placed restrictions on new spot orders and futures positions. According to the schedule, all trading services will be terminated on August 26, with the platform's complete cessation of operations slated for January 31, 2027.

Financial Impact

The fallout from the announcement is evident in the exchange's financials. On Monday, wallets identified by Arkham as belonging to BitMart contained approximately $69 million worth of crypto assets. This figure represents a significant decrease from the roughly $102 million held on July 6.

The exchange's native token has been hit even harder. According to CoinGecko data, BitMart's BMX token was trading near $0.057 on Monday, marking a weekly decline of about 81.5%. Just before the shutdown news broke late on Friday, the token was valued at around $0.31.

Broader Industry Implications

BitMart's closure has sparked conversations within the crypto industry regarding the potential for larger exchanges to absorb smaller, struggling competitors. Changpeng Zhao, the co-founder of Binance, weighed in on the topic, stating that the acquisition of a centralized exchange is a more complex undertaking than other business purchases. He explained that a buyer could unknowingly inherit significant security risks, such as backdoors implemented by the previous team. While Zhao acknowledged that such acquisitions are not impossible, he stressed that they demand a much higher level of diligence and scrutiny.