Echo Base announced on September 2 that it helped form an ad hoc committee representing Bitmart users with frozen assets. The committee has hired legal counsel to evaluate recovery options, including the possibility of an unfunded bankruptcy filing.
The move follows Bitmart's failure to respond to a restructuring proposal submitted by Echo Base on August 6. Echo Base had offered up to $10 million to sponsor a prenegotiated bankruptcy filing. According to Echo Base, Bitmart's silence prompted the formation of the committee.
Echo Base documented formal attempts to contact Bitmart regarding a withdrawal instruction submitted on July 24, 2026, approximately 31 hours before Bitmart announced it would cease operations. The firm said it made 15 separate attempts to contact the exchange about the withdrawal before delivering a formal demand on August 8.
Law firm Sonn Law Group has launched an investigation for Bitmart users with $500,000 or more trapped on the exchange. Users have accused Bitmart of withholding funds without legal basis.
Bitmart last updated users on August 21, stating it was developing a potential restructuring plan as an alternative to a full wind-down. The exchange promised another update no later than September 9 but has posted no further updates since then.
Roshan Dharia, CEO of Echo Base, said the recovery process becomes less viable the longer it continues. He noted that administering assets of this size takes years and that Bitmart has committed to a process it cannot staff past January 2027.
