BitMart has not published a proof-of-reserves report even as two projects say withdrawals from the exchange remain stuck. Arch Lending co-founder and CTO Himanshu Sahay says the episode shows why customer assets need independently verifiable custody, not just platform assurances. BitMart is winding down and plans to stop trading on Aug. 26.
Two projects report stuck withdrawals
OpenGradient co-founder Matthew Wang alleged on Aug. 10 that his project's market-making team could not withdraw balances held on BitMart and accused the exchange of insolvency. According to crypto.news: "Our MM has our balances stuck on BitMart exchange that we can't get out." Wang did not disclose the amount or composition of the assets, and his insolvency claim has not been independently verified.
Scandic Coin separately said withdrawal requests covering approximately 21,898 USDT, 926,635 SNC, and another 256 USDT remained unprocessed after being submitted on July 26. Unlike Wang, the project stopped short of declaring BitMart insolvent, instead asking the exchange for verifiable evidence it holds enough liquidity to complete withdrawals.
BitMart maintains that withdrawals remain available, though requests may face checks on identity, login devices, transaction history, and source of funds.
Verification gap, not just an exchange problem
Sahay said the dispute points to a structural gap: the difference between what a platform states and what customers can independently check. BitMart said in May that it was preparing a proof-of-reserves report after earlier withdrawal complaints, but it gave no release date, and none had been published as of Aug. 12.
He argued that regulated third-party custody reduces reliance on an exchange's own statements because customer collateral sits apart from the company's operating balance sheet. Such arrangements, he added, need to be built in from the start, not adopted once withdrawals stall.
BitMart winds down through 2027
BitMart began winding down its trading platform on July 26, and its token, BMX, fell approximately 63% in the first 24 hours following the announcement. Trading across the exchange is set to end on Aug. 26, ahead of a full platform closure planned for Jan. 31, 2027.
Founder Sheldon Xia denied on Aug. 8 that BitMart had misappropriated customer assets, saying the core team is conducting an asset inventory and considering third-party auditors as part of a transparent review.
Source: crypto.news
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