BitMart announced on July 26, 2026 the gradual shutdown of its platform, with a complete closure planned by end of January 2027, before freezing customer funds without prior notice. The platform’s reserves dropped from over $100 million in early July to approximately $36.4 million according to Arkham Intelligence, while CoinMarketCap values declared reserves at only $4.6 million. The Cayman Islands Monetary Authority (CIMA) confirmed that BitMart was never registered or regulated there, with the user contract now pointing to the Marshall Islands. Facing insolvency allegations, founder Sheldon Xia denies any misappropriation of funds but has provided neither a reimbursement timeline nor an independent audit. A collective of 172 victims has formed and is coordinating legal actions with around fifteen law firms.
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