What to know:
- BitMart withdrawals face delays as users report slow processing after the exchange announced its planned shutdown.
- Lookonchain data shows only 58 wallets withdrew about $805K in 24 hours, with no withdrawals recorded for eight hours.
- BitMart says extra compliance checks may delay withdrawals, including identity, wallet ownership, and source-of-funds verification.
Crypto exchange BitMart has been attracting more scrutiny following the slow wallet activity as the firm decided to close down its services. Although the company claims that customer withdrawals can still be processed, there have been claims by some customers of delays in making these withdrawals.
As per the report by blockchain analytics platform Lookonchain, just 58 wallets pulled out roughly $805,000 from BitMart in 24 hours. In addition, it reported that no withdrawals were made in the past eight hours, leading to more doubts about the withdrawal process.
Some other users on X reported their problems with withdrawal delays. As per one of the users, they got an email stating that the withdrawal of USDT was completed, but the transaction did not appear on the blockchain.
Meanwhile, another user mentioned that a $30 withdrawal was still not completed even after 30 minutes of the request. These are just individual complaints, and no verification has been done yet.
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BitMart Warns of Withdrawal Delays
BitMart has also said that withdrawals will be possible even after closing down its service. But BitMart had already said that the process might take more time due to extra compliance and security checks.
Customers’ identities, login device, address for withdrawal, trading history, and the origin of funds will be checked by the exchange before approving any transaction. In certain situations, customers may also be asked for different kinds of documents like proof of identity, proof of address, proof of origin of funds, or proof of wallet ownership.
It will be critical for how well BitMart handles the processing of its customers’ withdrawals during this time, which will have an important bearing on preserving their trust.
Exchange Begins Orderly Shutdown
On Sunday, BitMart announced that it will shut down its new user registration and deposit functions right away. BitMart will also restrict any new spot trades and futures positions on the exchange.
The firm stated on its official timeline that all of its trading activities will cease by Aug. 26, and the exchange will completely shut down by Jan. 31, 2027.
Block data provided by Arkham reveals that wallets connected to BitMart had about $69 million worth of crypto funds on Monday. This number has significantly decreased compared to $102 million recorded on July 6.
BMX Token Sees Sharp Decline
The native cryptocurrency of BitMart, BMX, experienced significant losses after the company announced that its operations were shut down.
According to CoinGecko, BMX is trading at $0.057 on Monday, representing a loss of 81.5% over the last seven days. Before Friday, when the closure of BitMart was announced, BMX was trading at $0.31.
CZ Comments on Exchange Acquisitions
The proposed closing has also raised debate on whether there are possibilities for large cryptocurrency exchanges to buy troubled small exchanges.
Founder of Binance, Changpeng Zhao (CZ), indicated that acquiring a centralized crypto exchange is more challenging compared to acquiring other companies. This is because the company buying the centralized exchange may face some security issues, including backdoors left behind by former developers.
However, acquisitions can still take place, but a lot of security review must be done before it.
Also Read | BitMart Announces Exchange Shutdown as BMX Token Crashes 70%
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