Echo Base formed an ad hoc committee of BitMart claimholders on Sept. 2 after the exchange never answered its $10 million restructuring proposal. The committee has retained two law firms and is weighing bankruptcy and other recovery options while BitMart prepares a Sept. 9 update on its own restructuring plan.
Echo Base formed an ad hoc committee of BitMart claimholders on Sept. 2, following the crypto exchange's decision to wind down its operations. The special situations firm said the group represents a significant and growing aggregate balance of frozen customer assets, though it did not disclose the number of claimholders involved or the value of their claims.
Echo Base says its offer went unanswered
The firm said it submitted a written proposal to BitMart management on Aug. 6, offering up to $10 million to sponsor a pre-negotiated bankruptcy filing. The money would have covered professional and administrative expenses through confirmation of a restructuring plan, but BitMart did not respond, according to Echo Base.
The committee retained the law firms Young Conaway Stargatt & Taylor and Ashbury Legal and is studying whether qualifying creditors could pursue an involuntary insolvency proceeding. No court has yet determined whether customers retain ownership rights over assets held through BitMart accounts.
A disputed withdrawal adds to the standoff
Echo Base also described a dispute involving one of its affiliates, which requested a withdrawal on July 24, about 31 hours before BitMart announced its closure. The affiliate made 15 attempts to contact BitMart before delivering a formal demand on Aug. 8, and BitMart has not publicly addressed that account.
Similar complaints have surfaced elsewhere: other BitMart users have engaged the law firm Sonn Law Group to investigate potential claims for customers with $500,000 or more trapped on the exchange.
BitMart weighs an alternative to full wind-down
BitMart announced its orderly wind-down on July 26, suspending new registrations, deposits and orders before ending trading on Aug. 26. It originally planned to cease platform operations on Jan. 31, 2027, though withdrawals were meant to stay open.
However, BitMart changed course on Aug. 21, saying it was developing a possible restructuring plan as an alternative to a full wind-down that could include phased business resumptions and creditor distributions. The exchange appointed White & Case as restructuring counsel and promised another update by Sept. 9.
Echo Base CEO Roshan Dharia argued the exchange still has room to act but lacks financial backing for it. "That is not a wind-down, it is an open liability with a queue attached", Dharia said. Until BitMart responds or a court filing emerges, the committee said its recovery options remain under review.
Sources: crypto.news, Bitcoin.com News
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