BitMart is considering restarting some operations and making payouts to creditors, less than a month after announcing plans to wind down its crypto exchange.
The company is working on a restructuring plan after talks with users, stakeholders and advisers. It has hired White & Case to assess its options, with any restart subject to legal, financial and regulatory reviews. BitMart expects to outline a roadmap by Sept. 9.
Restructuring Plan Takes Shape
BitMart said a potential restart would follow further consultations with its community. The exchange has also urged users to rely on official channels as it addresses concerns over scams.
Related: The IRS Warns About Mail-Based Phishing Campaign Targeting US Crypto Users
Users have reported withdrawal difficulties since August, while former employees have alleged unpaid wages. Founder Sheldon Xia rejected the claims as “fabricated rumors.” He has not disclosed the exchange’s reserves or provided a timetable for resolving the issues.
Leadership Dispute Preceded Shutdown
The restructuring effort follows a leadership dispute. Nenter Chow said BitMart removed him as global CEO on July 24, two days before the exchange announced its plans to close.
BitMart was also hit by a $196 million hack in 2021 after attackers gained access to a private key linked to hot wallets. The incident adds to the challenges facing the exchange as it seeks to rebuild user confidence.
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Source: https://coinedition.com/bitmart-weighs-restart-as-crypto-exchange-restructuring/
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