Echo Base has formed a new committee representing BitMart customers whose assets remain frozen after the crypto exchange announced plans to shut down.
The firm said the group already represents a large and growing amount of customer funds, although it did not reveal how many people have joined or the total value of the claims.
To support its efforts, the committee has hired two law firms and is now reviewing possible legal, regulatory, restructuring and insolvency options to help customers recover their assets.
Echo Base also revealed that it sent BitMart a written proposal on Aug. 6 offering up to $10 million to support a pre-negotiated bankruptcy process. According to Echo Base, the funding would have covered professional and administrative costs during the restructuring. The company claims BitMart never responded to the proposal.
The firm also described a dispute involving one of its affiliates. It said the affiliate requested a withdrawal on July 24, more than a day before BitMart announced its shutdown. Echo Base claims multiple attempts were made to contact the exchange, followed by a formal demand in August, but the withdrawal was never processed and no legal reason was provided for withholding the assets.
BitMart announced its planned wind-down on July 26 and gradually stopped key services, including new registrations, deposits and trading activities. At the time, the exchange said it intended to fully cease platform operations by Jan. 31, 2027, while continuing to allow withdrawals, although delays could occur because of compliance checks and high demand.
The shutdown had an immediate impact on BitMart’s native BMX token, which lost more than 60% of its value within a day. The exchange blamed the decision on business conditions, market challenges and long-term strategic considerations.
However, BitMart later signaled that it may not completely shut down after all. In an update released on Aug. 21, the company said it was exploring a restructuring plan that could include a phased restart of some operations and distributions to creditors. BitMart also appointed White & Case as restructuring counsel and promised to provide a more detailed update by Sept. 9.
Meanwhile, Echo Base said the committee is evaluating whether eligible creditors could launch or join an involuntary bankruptcy proceeding. No final decision has been made, and any such action would have to meet legal requirements and receive court approval.
The firm also argues that BitMart’s user agreement does not transfer ownership of customer assets to the exchange. That remains Echo Base’s legal position and has not been confirmed by any court. The final treatment of customer funds would depend on the contracts involved, the jurisdictions involved and the outcome of any future legal proceedings.
Echo Base CEO Roshan Dharia said BitMart still has an opportunity to manage an orderly wind-down but warned that the process becomes more difficult without outside financial backing. He added that the company’s $10 million proposal has remained on the table since Aug. 6.
For now, attention is focused on Sept. 9, when BitMart is expected to release its next roadmap. The update should provide more clarity on whether the exchange will move forward with a restructuring, reopen parts of the business, distribute funds to creditors, or continue with its original shutdown plan.
Until then, discussions between BitMart, its advisers and customer representatives remain ongoing, while affected users continue waiting for answers about their frozen assets.
