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Echo Base formed a user committee on September 2. The goal: recover more than $500,000 in assets stuck on Bitmart, an exchange that’s been pretty much silent for weeks.
The move came after months of unanswered proposals, failed contact attempts, and what Echo Base calls an outright refusal to execute valid withdrawal requests. Legal counsel is now on board. An unfunded bankruptcy filing is on the table. And the clock is running out — Echo Base has said Bitmart can’t sustain its current limbo past January.
How the Committee Got Here
Back on August 6, Echo Base put a concrete offer in front of Bitmart: up to $10 million to sponsor a prenegotiated bankruptcy filing. It wasn’t a vague expression of interest. It was a funded, structured proposal from a firm that says it has the resources and the expertise to manage an orderly run-off of a distressed digital asset platform. Bitmart didn’t respond.
Then on July 24, an affiliate of Echo Base submitted a withdrawal instruction to Bitmart. Bitmart didn’t execute it. On August 8, a formal demand went out documenting what had happened — and it noted 15 separate failed attempts to reach the exchange about the issue. Fifteen. That’s not a communication gap. That’s a wall.
Bitmart did say something on August 21. The exchange put out a statement saying it was working on a restructuring plan as an alternative to shutting down entirely. The plan, as described, would involve a phased resumption of some operations — but only after legal, financial, operational, and regulatory assessments were completed. Bitmart promised another update by September 9. That update hasn’t come.
So Echo Base organized the committee. Users with trapped assets are now consolidated under one legal effort, represented in part by Sonn Law Group, which is pursuing claims on behalf of clients with more than $500,000 locked on the platform. The committee isn’t just waiting — it’s actively weighing every legal and financial option available.
Echo Base CEO Flags the January Deadline
Roshan Dharia, CEO of Echo Base, has been direct about the timeline. He’s said the complexity of administering cases like Bitmart’s is real, but that swift action is necessary. Bitmart, he’s made clear, can’t keep running in its current state past January. Echo Base has what it takes to manage a compliant run-off — it’s just stuck waiting for a response that hasn’t arrived.
That’s a hard position to be in. The firm came in with money, a plan, and a willingness to engage. It got silence. And now users are the ones absorbing the cost of that silence, watching their funds stay frozen with no clear timeline for resolution.
The accusations against Bitmart are serious. Echo Base says the exchange is withholding user funds without legal justification. That’s not a minor operational complaint — that’s the kind of claim that tends to accelerate legal proceedings, especially when a formal demand has already been filed and ignored.
What Comes Next for Affected Users
Bitmart’s August 21 statement did mention advisers. The exchange said it was bringing in guidance to help navigate the restructuring process, with the intention of stabilizing operations and restoring some functionality. But without follow-up communication, that plan is basically just words on a page. Users have no way to verify progress, no way to know if their funds are secure, and no way to assess whether the September 9 update deadline means anything at all.
The committee’s formation changes the dynamic somewhat. Instead of individual users each chasing the exchange separately, there’s now a unified front. Legal counsel is hired. Sonn Law Group is involved. Echo Base is coordinating. And if Bitmart continues to stay quiet, an unfunded bankruptcy filing becomes increasingly likely.
That path — unfunded bankruptcy — is messier and slower than what Echo Base originally proposed. A prenegotiated filing with $10 million in sponsorship would have given the process structure and resources from the start. Without Bitmart’s cooperation, the committee would essentially be forcing the issue through court, which takes longer and costs more, and probably delivers less to users in the end.
But it’s still a path. And right now, it’s the clearest one available.
The broader situation probably won’t surprise anyone who’s followed distressed crypto exchanges over the past few years. Withdrawal freezes, communication blackouts, last-minute restructuring announcements — the pattern is familiar. What’s a bit different here is the speed and specificity of the organized response. Echo Base came in early, with a real offer, and documented everything carefully. The 15 contact attempts, the formal demand, the August 6 proposal — all of it creates a paper trail that matters if this ends up in front of a bankruptcy court.
Bitmart’s proposed September 9 update is now overdue.
Frequently Asked Questions
What is Echo Base offering Bitmart to resolve the situation?
Echo Base offered up to $10 million to sponsor a prenegotiated bankruptcy filing for Bitmart, a proposal made on August 6 that has so far gone unanswered.
Who is representing Bitmart users in the legal effort?
Sonn Law Group is representing users pursuing claims to recover assets exceeding $500,000 locked on the exchange, alongside the broader committee organized by Echo Base.
Why It Matters
The legal action taken by Echo Base and its user committee against Bitmart highlights the growing concerns regarding the reliability and transparency of cryptocurrency exchanges, particularly in light of increasing regulatory scrutiny in the sector. As users face challenges in accessing their funds, this situation may further erode trust in centralized platforms, potentially leading to greater demand for decentralized alternatives. Moreover, the outcome of this case could set a precedent for how disputes between users and exchanges are handled in the evolving crypto landscape.
