BitMart's Proposed Recovery Options for Customers

BitMart has outlined a restructuring plan that converts outstanding user account balances into dollar-denominated claims. These claims would be valued using weighted average prices of tokens from July 26 to the record date, with adjudication handled by a court-appointed officer. Users can choose between an upfront proportional distribution from liquid assets, a Restitution Token tied to recoveries of hacked funds, or a Continuum Token backed by investments, asset disposals, and potential profits if the business restarts.

The plan includes no specific withdrawal date. November 2026 is scheduled for revisions following stakeholder feedback, with court applications targeted for December or January 2027. BitMart appointed Alvarez & Marsal to review finances and withdrawal arrangements in September after trading halted on August 26. A user engagement portal launched in September allows questions and feedback but does not process individual withdrawals or alter account status.

ATEG Capital Project Seeks Return of Trapped Assets

ATEG Capital, the project behind the ATEG token, has requested the return of approximately 800,000 tokens and an unspecified USDC balance held on BitMart. The tokens were listed on the exchange on June 10, 2026, and the project continued developing its ecosystem despite operational issues. ATEG representatives described the holdings as legitimate project assets, not promotional allocations.

Aliyu Almustapha, identified as ATEG Capital’s chief financial officer, publicly called for the return of these funds on November 4, 2026. He stated that the tokens and USDC remain inaccessible after his X account was blocked by BitMart founder Sheldon Xia. Mohamed Higazie, founder of ATEG, separately appealed for the tokens while allowing time to resolve USDC obligations. Other users urged Xia to engage with ATEG, with some warning of public discussions and reports to authorities.

BitMart Founder Addresses Security Staffing Shortages

Sheldon Xia confirmed a cyberattack on BitMart on November 3, 2026, describing the amount involved as small. He said the team quickly opened an investigation and strengthened security defenses. Xia also noted that threats against employees and alleged retaliation by former staff had made it difficult to retain key technical personnel. The exchange’s security team is currently severely understaffed, though measures are in place to safeguard data and assets.

Blockchain analytics firm Bitquery identified approximately 391,000 in suspicious transfers from wallets mostly associated with BitMart across the Base, Arbitrum, and Optimism networks. The first transfers began 53 minutes before the main drain on Mercado Bitcoin and reached the same attacker address. Researchers labeled the Arbitrum and Optimism wallets as BitMart hot wallets, with the Base wallet identified through prior transfers linked to the exchange’s proof of reserves. A second round of transfers on Base occurred at 20:20 UTC on November 2, with roughly 1,400 deposit addresses sending small amounts of ETH to the attacker between 20:19 and 20:44 UTC.

BitMart’s Operations and Recent Events

Trading on BitMart ended on August 26, 2026, as the exchange ceased operations in January 2027. Users reported delays and frozen accounts, prompting restrictions including instructions for U.S. users to close positions and withdraw assets by August 8 at 23:59 UTC. The U.S. notice later noted that restrictions could apply and withdrawals might require identity or source-of-funds checks.

The latest hack occurred during the ongoing restructuring and liquidation process. Xia described the suspected connection to the Mercado Bitcoin attack as preliminary, noting that the same group may have been involved. BitMart has paused deposits and withdrawals on Mercado Bitcoin, but customer holdings there were unaffected. The disclosure comes as the exchange navigates its wind-down and restructuring.