BitMart Rethinks Shutdown of Its Crypto Exchange

Last month, cryptocurrency exchange BitMart announced plans to wind down its operations.

Now, the company says it is exploring a way to remain open, according to an announcement published on its website Friday (Aug. 21).

“Following further discussions with members of the community, our stakeholders and professional advisers, BitMart is developing a potential restructuring plan as an alternative to a full wind-down,” the announcement said.

“The potential plan may include the phased resumption of certain operations in an orderly manner alongside distributions to creditors, subject to further legal, financial, operational and regulatory assessment.”

BitMart added that it has appointed the law practice White & Case as its restructuring counsel, with the firm working with BitMart’s other professional advisers to evaluate its options and help come up with a potential restructuring plan, which would include any framework for the phased resumption of business. The company said it hopes to have an update by Sept. 9.

“We will endeavor to provide further information to the community on a rolling basis as soon as it is available, and we ask for your patience and understanding while this work is carried out,” Bitmart’s announcement said. “We expect to consult with the community on any business resumption plan once it is launched.”

BitMart said July 26 that it was winding down its operations after evaluating its “operating conditions, market environment, and future strategic direction.” The company said at the time that trading services would be discontinued Aug. 26, with BitMart’s operations officially ending on Jan. 31.

Days earlier, another crypto company, BitMEX,  announced its plans to shut down following a “strategic review of the business and the broader crypto industry.”

Also in July, cryptocurrency wallet SecondFI said it was planning to shutter in the wake of an attack that stole $2.4 million from its users.

In other crypto news, PYMNTS wrote last week about new industry efforts by the likes of Rain and Kraken to make it easier for consumers to use digital assets for purchases.

“For payment networks, the competitive question becomes less about whether consumers will select ‘stablecoin’ beside credit and debit and more whether embracing a stablecoin liquidity layer can improve funding, conversion, cross-border settlement or treasury operations somewhere inside an otherwise familiar payment,” the report said.

“After all, stablecoin proponents have traditionally hung their hat on the efficiencies that that blockchain provides when money crosses borders.”