Crypto Exchanges

Story: Echo Base Takes Legal Action as Bitmart Freezes Over $500,000 in User Funds

By Pankaj K

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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…

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Echo Base CEO Flags the January Deadline. Roshan Dharia, CEO of Echo Base, has been direct about the timeline.

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What Comes Next for Affected Users. Bitmart's August 21 statement did mention advisers. The exchange said it was bringing in guidance…

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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.

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The move came after months of unanswered proposals, failed contact attempts, and what Echo Base calls an outright refusal to execute valid withdrawal requests.

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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.

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Then on July 24, an affiliate of Echo Base submitted a withdrawal instruction to Bitmart. Bitmart didn't execute it.

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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.

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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…

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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.

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More context: Binance Launches Options Trading on 1,000 US Stocks for International Users

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That's a hard position to be in. The firm came in with money, a plan, and a willingness to engage. It got silence.

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The accusations against Bitmart are serious. Echo Base says the exchange is withholding user funds without legal justification.

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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…

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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.

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