BitMart Escalates Row With Founder Over Funds as Exchange Completes Shutdown

Official Account Demands Transparency From Founder

BitMart’s official Chinese-language social media account has issued a highly unusual public ultimatum directed at founder Sheldon Xia, demanding he provide a full accounting of the exchange’s financial position by August 19. In a Monday post, the account alleged that certain users continue to face obstacles when attempting to withdraw their funds, while some staff members have not received their final salary and compensation packages. The account called specifically for Xia to disclose BitMart’s cryptocurrency wallet contents, total asset inventory, liability breakdown, and available reserves. The escalation included a warning that should Xia fail to provide verifiable asset documentation and a repayment strategy by the deadline, the account would file formal complaints with regulatory authorities, law enforcement agencies, lawyers, and media outlets. However, the circumstances surrounding the post’s authorship remain ambiguous—it is unclear who actually composed the message or whether BitMart’s official account remains under the company’s control. Cointelegraph’s attempts to obtain comment from BitMart proved unsuccessful at the time of reporting.

Founder Denies Wrongdoing, Pledges Legal Action

Xia responded swiftly through his own social media, characterizing the allegations as completely false and describing them as deliberately fabricated statements. He stated that his team had preserved comprehensive documentation of the disputed posts and signaled his intention to pursue legal remedies, including filing police reports and sending legal notices to the social media platform demanding technical and data forensics. Xia addressed concerns about differential treatment, asserting that he views customers and employees equally when handling remaining assets and that no preferential groups exist in the asset distribution process. This latest response builds on prior statements made by Xia on August 8, when he advised users not to believe unverified claims or screenshots purportedly provided by current or former employees. He has also previously rejected suggestions that BitMart engaged in unauthorized taking of user assets.

Asset Holdings Diminish as Shutdown Progresses

The contentious exchange between BitMart’s account and its founder unfolds against the backdrop of the platform’s announced shutdown. BitMart publicly announced on July 26 that it would discontinue exchange operations, a decision that came after its native token experienced significant value erosion and users reported experiencing withdrawal delays. According to the exchange’s stated timeline, customer trading will conclude on August 26, with full operational wind-down scheduled for January 31. Among the restrictive measures already implemented, BitMart has ceased accepting new account registrations and suspended deposits, while cautioning users that certain withdrawal requests may encounter additional screening delays for compliance and security purposes. Tracking services monitoring cryptocurrency wallets attributed to BitMart have documented a substantial decrease in holdings, showing approximately 36.5 million dollars in digital assets as of Monday, down from around 71 million dollars recorded on July 26 and substantially lower than the roughly 102 million dollars tracked on July 6. These figures represent only the monitored wallets and may not encompass BitMart’s full asset position, with the decline potentially reflecting legitimate customer withdrawals, internal asset consolidation, or movements to additional wallets beyond the monitoring scope.

Exchange liquidity crises and customer fund accessibility issues remain a persistent challenge for cryptocurrency adoption and user confidence.

Source: BitMart, via Cointelegraph. Not financial advice.