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BitMart proposes court-backed repayment plan for users hit by 2021 hack
The Cayman Islands exchange wants to dollarize user balances and offer cash, stablecoins, or new tokens, pending court approval
Nearly five years after hackers drained about $319.5 million from BitMart, the exchange finally has a repayment plan on paper. It still needs a judge to sign off on it.
On September 30, 2026, the Cayman Islands-based exchange released a preliminary restructuring proposal. The goal is to deal with a shortfall in user balances tied to the December 2021 breach. A court application is targeted for December 2026 or January 2027.
How the proposal works
BitMart plans to dollarize balances using weighted average trading prices tied to July 26, 2026. Whatever your account held, in whatever tokens, gets translated into a single dollar figure. That number becomes your claim.
From there, users would choose between two broad paths.
The first is a pro-rata payout from the exchange’s available liquid assets. Users taking this route could receive fiat or stablecoins.
The second path is a conversion into new tokens. The proposal introduces two of them: Restitution Tokens and Continuum Tokens. Together, they are designed to reflect potential recoveries and the exchange’s future profitability.
Who is involved and what happens next
BitMart is not drafting this alone. The restructuring is being advised by consulting firm Alvarez & Marsal and law firm White & Case.
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BitMart plans to solicit input from its 50 largest users over the next three to four weeks. Adjustments to the proposal are anticipated in November.
After that, the exchange expects to file its court application. The target window is December 2026 or January 2027.
The plan must earn court sanction before anything moves forward. Until then, it remains a proposal, not a payout schedule.
The long road from hack to plan
The breach itself was confirmed as of December 4, 2021. At roughly $319.5 million in losses, it left a hole in the exchange’s balance sheet that never fully closed.
BitMart has been reviewing its operational strategy since mid-2026, citing a weaker market environment. Withdrawals have been restricted as the exchange manages operational losses and balance sheet deficits.
The exchange’s financial health has also drawn ongoing scrutiny, including discussions about potential bankruptcy proceedings, which adds weight to the decision to pursue a structured, court-supervised route.
What this means for users and the industry
The dollarization date matters. Locking balances to July 26, 2026 pricing means users do not capture any price moves after that point. Someone holding a token that rallies later would not see that gain reflected in their claim. Someone holding a token that drops would be shielded.
The feedback process itself is worth watching. BitMart is starting with its 50 largest users. Their input could shape the terms everyone else lives with.
The key dates to track are November, when revisions are expected, and the December 2026 to January 2027 window for the court application. Until a court sanctions the plan, BitMart users are holding a proposal, not a check.