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BitMart Proposes Court-Backed Repayment Plan for Users Affected by 2021 Hack
BitMart, a cryptocurrency exchange based in the Cayman Islands, has unveiled a preliminary restructuring proposal aimed at addressing the financial fallout from a significant hack in December 2021, which resulted in losses of approximately $319.5 million. The exchange's plan, announced on September 30, 2026, seeks court approval to implement a repayment strategy for affected users, with an application expected to be filed in late 2026 or early 2027.
The proposed plan involves 'dollarizing' user balances based on weighted average trading prices from July 26, 2026. Users will have the option to receive payouts in fiat currency or stablecoins from the exchange's liquid assets, or they can convert their claims into new tokens named Restitution Tokens and Continuum Tokens, which are intended to reflect potential recoveries and the exchange's future profitability. The restructuring process is being guided by consulting firm Alvarez & Marsal and law firm White & Case.
BitMart plans to engage with its 50 largest users over the next few weeks to gather feedback on the proposal, with revisions anticipated in November. The exchange's financial situation has been under scrutiny, and this structured, court-supervised approach is seen as a necessary step to manage operational losses and balance sheet deficits. Until the court sanctions the plan, it remains a proposal, leaving users awaiting a definitive payout schedule.
Source: KLEA News