BitMart Proposes Court-Backed Payout Plan for Users of 2021 Hack
BitMart's preliminary plan would pay users from liquid assets, issue a token backed by 2021 hack recoveries or offer a token tied to its holdings, and it wants a court to sanction it.
Why it matters
A court-appointed officer valuing user balances and a request for court sanction would move the wind-down of a hacked exchange into a court-supervised payout process, with the Restitution Token and Continuum Token routes deciding how much of the December 2021 hack losses users are made whole on. The scale of that recovery is still unknown because the record date is unset and the percentage-return estimate is unfinished, and only Unchained has reported the proposal.
Key facts
BitMart published a preliminary plan for repaying users more than two months after it began winding down its trading platform.
Reported by Unchained
Each user's account would be converted into a single dollar figure priced at the weighted average of their tokens' trading prices from July 26 to a record date that has not been set.
Reported by Unchained
A court-appointed officer would value the balances and BitMart said it wants a court to sanction the plan.
Reported by Unchained
Users wanting out immediately would receive a pro rata share of BitMart's liquid assets, including fiat, the stablecoins USDC, PYUSD and USDT, and bitcoin, ether and solana.
Reported by Unchained
Each dollar of balance would convert into one Restitution Token backed by whatever BitMart recovers from its December 2021 hack.
Reported by Unchained
A Continuum Token would trade on decentralized exchanges and be backed by BitMart's investments, sales of hard-to-sell holdings such as private equity stakes and altcoins, and a cut of future profits if the company can raise money to restart the business.
Reported by Unchained
BitMart said its latest private forensic reports found 'certain pockets of value which are held with certain centralized exchanges'.
Reported by Unchained
BitMart said it is drafting a report estimating the percentage return under each of the three routes.
Reported by Unchained
What happened
Unchained reported that BitMart published a preliminary repayment plan on Wednesday, more than two months after the exchange began winding down its trading platform. Under the proposal, each account would be turned into a single dollar figure priced at the weighted average of the holder's token trading prices from July 26 to a record date that has not been set, a court-appointed officer would value the balances, and BitMart said it wants a court to sanction the plan. Users could take one route or mix three: an upfront pro rata share of liquid assets including fiat, stablecoins USDC, PYUSD and USDT, and bitcoin, ether and solana; a Restitution Token, one token per dollar of balance and backed by whatever BitMart recovers from its December 2021 hack; and a Continuum Token that would trade on decentralized exchanges and be backed by the company's investments, sales of hard-to-sell holdings such as private equity stakes and altcoins, and a cut of future profits if BitMart can raise money to restart the business. BitMart said its latest private forensic reports found 'certain pockets of value which are held with certain centralized exchanges', and that it is drafting a report estimating the percentage return under each route. Unchained is the only outlet in this set carrying the story, the record date is unset, and no recovery or return figures have been published.
How the story developed
- First report
First report by Unchained
BitMart Proposes Court-Backed Plan Offering Users Payouts or Tokens Tied to Its 2021 Hack
- Update
BitMart is hacked in December 2021
The December 2021 hack is the loss BitMart says any recovery would go toward, and the basis for the Restitution Token.
- Official statement
Private forensic reports point to value held at centralized exchanges
BitMart said its latest private forensic reports found 'certain pockets of value which are held with certain centralized exchanges'.
- Update
BitMart begins winding down its trading platform
Unchained dates the start of the wind-down to more than two months before the repayment proposal.
- Official statement
BitMart releases preliminary repayment plan and seeks court sanction
The proposal released on a Wednesday sets out three payout routes, prices balances from July 26 to an unset record date and would have a court-appointed officer value accounts.
- Update
Unchained publishes the only account of the proposal in this evidence set
The report is an excerpt from the Unchained Daily newsletter; no other outlet here covers the plan.
Affected entities
Also mentioned: BNB, Base, PayPal USD
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Unchained Crypto media | BitMart Proposes Court-Backed Plan Offering Users Payouts or Tokens Tied to Its 2021 Hack | Original |
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