Echo Base, a privately funded special situations platform focused on digital asset companies, has organized an ad hoc committee of BitMart claimholders after the exchange failed to respond to a funded bankruptcy restructuring proposal. The committee represents a significant and growing aggregate balance of customer assets frozen following BitMart’s announcement that it would cease operations.

BitMart stated on July 26, 2026, that it would wind down its global trading platform. The exchange suspended new registrations, deposits and new orders, with trading services ending on August 26. It initially planned to cease platform operations by January 31, 2027, while keeping withdrawals available subject to compliance reviews and processing delays.

Unanswered $10 Million Proposal and Withdrawal Demand

On August 6, Echo Base submitted a written proposal to BitMart management offering to commit up to $10 million to sponsor a pre-negotiated bankruptcy filing. The funds were intended to cover professional and administrative costs through plan confirmation and support an orderly process aimed at maximizing recoveries for affected claimholders. BitMart did not respond.

Two days later, on August 8, an Echo Base affiliate delivered a formal demand over BitMart’s failure to execute a withdrawal instruction submitted on July 24, roughly 31 hours before the exchange announced it would cease operations. The demand documented 15 separate contact attempts and stated that BitMart had not identified any contractual, legal or other basis for withholding the assets. BitMart again did not respond.

Dharia noted that administering a book of this size takes years and that BitMart has publicly committed to a process it cannot staff past January. He said Echo Base possesses the capital, infrastructure and expertise for a compliant run-off, adding that every week without a response narrows the remaining options. The proposal has been outstanding since August 6.

Committee Formation and Legal Steps

Echo Base announced the formation of the ad hoc claimholder committee on September 2. The group has retained Young Conaway Stargatt & Taylor, LLP and Ashbury Legal PC. It is coordinating efforts to protect claimholder interests and evaluate recovery options, including responses to a potential unfunded or freefall bankruptcy filing.

The committee is reviewing legal, regulatory and insolvency remedies. Based on its analysis of BitMart’s User Agreement, the committee maintains that title to customer assets does not transfer to the exchange. It is assessing the implications of these provisions for the treatment and recovery of frozen assets. Qualifying creditors may also have rights to commence or join an involuntary insolvency proceeding if statutory requirements are met. No decision has been made to initiate any specific proceeding.

Echo Base and the committee stated they remain prepared to engage constructively with BitMart, its management and restructuring advisers on a consensual path for returning or administering the frozen assets. They have requested engagement before pursuing additional remedies.

BitMart’s Alternative Restructuring Path

On August 21, BitMart posted an update indicating it was developing a potential restructuring plan as an alternative to a full wind-down. The plan may include phased resumption of certain operations, subject to legal, financial, operational and regulatory assessments, along with possible creditor distributions. The exchange appointed White & Case as restructuring counsel and said a roadmap was under development, with a further update promised no later than September 9.

BitMart has not publicly addressed the specific Echo Base proposal or the affiliate’s withdrawal demand. Separately, Sonn Law Group has launched an investigation into potential claims for BitMart users with trapped funds of $500,000 or more.

Affected customers and claimholders seeking information may contact the committee at [email protected]. Echo Base described itself as a platform that invests in, stabilizes and repositions companies in the digital asset sector through distressed expertise, operating capability and flexible capital solutions. All rights, claims and remedies of Echo Base, its affiliates, the committee and participating claimholders remain expressly reserved.