BitMart Exchange scammed all users

[Coyster]

I don't know if that claim is valid, but why would someone hold that much money on an exchange like this one? I would never, although I don't have that much money haha, but still, why?

I wouldn't even hold 1% of that amount in any centralized exchange at all, let alone one that was hacked and lost just shy of $200m a few years ago, no chance!

They must be under some legal pressure after all those complaints.

I think so too, they ought to know that there would be legal consequences if they continue with this sham of a wind-down process. Though i am not optimistic about this process, because as of right now, i still stand by my words, that i believe this exchange do not have the liquidity to settle most of their liabilities.

[Smack That Ace]

Bitmart founder speaks --- https://x.com/sheldonbitmart/status/2086059203576377616

Someone has commented that his $10 million is stuck on that exchange, which is a huge amount.

I don't know if that claim is valid, but why would someone hold that much money on an exchange like this one? I would never, although I don't have that much money haha, but still, why?

Anyway, some other members have also commented with their amounts stuck, and one has even shared his case ID. Let's see what will happen now if the representative is really responding. They must be under some legal pressure after all those complaints.

While ordinary retail traders can hold their funds in trust wallet or cold storage, this is often not possible for institutional whales or market makers. They need to keep huge amount of liquidity on their exchanges to do arbitrage trading, high-frequency algorithmic trading or OTC deal.

Sometimes, many people think, BitMart is a big, old exchange, my funds are safe. But they haven't learned anything from the collapse of giants like FTX or Celsius! They are now paying the price for forgetting golden rule of Not your keys, not your coins.

[NotATether]

I have about $45 in ETH in there for their card. I just submitted a withdraw request.

Let's see if I can get it out.

Edit: They seem have to disabled the cards too, so I can't spend it on anything.

[$crypto$]

Bitmart founder speaks --- https://x.com/sheldonbitmart/status/2086059203576377616

Someone has commented that his $10 million is stuck on that exchange, which is a huge amount.

I don't know if that claim is valid, but why would someone hold that much money on an exchange like this one? I would never, although I don't have that much money haha, but still, why?

Anyway, some other members have also commented with their amounts stuck, and one has even shared his case ID. Let's see what will happen now if the representative is really responding. They must be under some legal pressure after all those complaints.

I caught a glimpse of that tweet on X about the withdrawal of $10m cannot be pulled out of Bitmart, $5m USDT and $5m USDC.

Is there any other reason that the user might be storing a lot of assets on the exchange, maybe he is a day trader? Still, it's a risk that must be faced when the exchange faces problems like this.

There are dozens of complaints about the withdrawal problem, even hundreds of users continue to complain, I do not know but it is likely that representatives of them did not respond so quickly.

[Hamza2424]

I wouldn't even hold 1% of that amount in any centralized exchange at all, let alone one that was hacked and lost just shy of $200m a few years ago, no chance!

I have held on CEXs but not these ones. I would never suggest anyone to hold more than $10k on exchanges, and if you are a trader, then you can hold more, but never hold for long-term investment plans thinking Coldcard hardware wallet had flaws, so maybe other HWs will also have some, or other hot wallets will also have some flaws.

People are already searching for alternatives because they want someone they can blame and claim refunds from. But they are not aware of the BitMart incident yet.

I think so too, they ought to know that there would be legal consequences if they continue with this sham of a wind-down process. Though i am not optimistic about this process, because as of right now, i still stand by my words, that i believe this exchange do not have the liquidity to settle most of their liabilities.

I also read in this thread that they were not even registered for a long time, but no one confirmed that at the time. If they were not even regulated, then the authorities will be slower than normal to catch them, but it depends on the number of reports that people will file.