BitMart Exit Sparks Panic as BMX Token Value Slumps Sharply

Users have been given one month to exit open trades and up to six months to withdraw their funds, though the exchange did not clearly state why it is shutting down.

Crypto exchange BitMart announced on Sunday that it will wind down its trading platform, bringing an end to nine years of operations. Its native BMX token dropped nearly 60% following the announcement.

The development makes BitMart the second exchange this week to reveal plans to close. Earlier, perpetuals trading firm BitMEX said it would shut down after 11 years, according to CoinDesk.

BitMart said it halted new user registrations, deposits, and trading orders from 01:30 UTC on Sunday, while futures accounts were placed in reduce-only mode.

All trading, including spot and derivatives, will cease on Aug. 26, and the platform will fully shut down on Jan. 31, 2027. Withdrawals will remain open during this period, but users are encouraged to complete identity verification, close positions, and submit withdrawal requests ahead of the August cutoff.

In a statement, the company said the decision followed a review of its operating conditions, market environment, and long-term strategy, without detailing which factor ultimately led to the closure.

CoinDesk has reached out to BitMart for additional comment.

BMX, the exchange’s token, fell to roughly $0.08, down 58% over 24 hours, reducing its market capitalization to about $27 million. The token had already declined around 70% over the past year, extending a broader downtrend.

Despite the shutdown, BitMart’s trading activity remains significant. The exchange reported $1.6 billion in 24-hour volume, up 51% from the previous period, with bitcoin accounting for nearly half. The spike likely reflects users unwinding positions and withdrawing funds rather than fresh inflows, raising questions about why a platform with such volume is closing.

The withdrawal process may also involve added scrutiny. BitMart warned that requests could be subject to enhanced checks, including identity verification, device and IP validation, withdrawal address screening, source-of-funds inquiries, and sanctions compliance. Processing times may increase if withdrawal volumes surge.

BitMart previously suffered a major security breach in December 2021, when approximately $196 million was stolen from its hot wallets. The exchange reimbursed affected users at the time.