Key Takeaways
- On Sept. 2, Echo Base formed a committee for Bitmart claimholders to recover frozen assets.
- Sonn Law Group launched an investigation for Bitmart users facing trapped funds of $500,000 or more.
- Bitmart CEO Roshan Dharia warned that delays shrink recovery options before staff exits in Jan. 2027.
Echo Base Steps in After Ignored $10M Offer
More than a month after Bitmart announced its wind-down, Echo Base said Sept. 2 that it helped form an ad hoc committee representing a growing share of frozen customer assets. Echo Base, a firm focused on stabilizing digital asset companies, noted the committee hired counsel to evaluate recovery options, including a potential unfunded bankruptcy filing.
In a statement, Echo Base said the move followed Bitmart’s failure “to respond to a funded bankruptcy restructuring proposal” submitted Aug. 6. Echo Base had offered up to $10 million to sponsor a prenegotiated bankruptcy filing, but Bitmart’s silence forced the firm to help form the committee.
In addition to facing allegations of refusing to respond to the proposal, Bitmart is accused of withholding user funds without legal basis.
“On August 8, 2026, an Echo Base affiliate delivered a formal demand concerning Bitmart’s failure to execute a withdrawal instruction submitted on July 24, 2026, approximately 31 hours before Bitmart announced that it would cease operations. The demand documented 15 separate attempts to contact Bitmart regarding the withdrawal,” Echo Base said in the statement.
Similar allegations have been levelled against Bitmart by other users who have since engaged the law firm Sonn Law Group to investigate potential claims and recovery options for customers with $500,000 or more trapped on the exchange.
Unfulfilled Promises
In its most recent statement, shared Aug. 21 on X, Bitmart said it was developing a potential restructuring plan as an alternative to a full wind-down. Under the plan, there would be a “phased resumption of certain operations” subject to legal, financial, operational, and regulatory assessments. The post noted that a roadmap was being developed alongside advisers, with another update promised no later than Sept. 9.
Although Bitmart promised to provide further information on a rolling basis, it has posted no further updates on X since then, fueling speculation that the funds are either missing or were misappropriated.
Roshan Dharia, CEO of Echo Base, said that while the committee remains prepared to engage constructively with Bitmart, the process becomes less viable the longer it drags on.
“Administering a book this size takes years, and Bitmart has publicly committed to a process it cannot staff past January. We have the capital, infrastructure and expertise to run a compliant and orderly run-off. Every week this goes unanswered, the version that remains available narrows. Our proposal has been outstanding since August 6,” Dharia said.
