BitMart Faces Aug. 19 Deadline Over Delayed Withdrawals
Key Takeaways
- •People claiming to be BitMart employees posted accusations of asset mismanagement through the exchange's Chinese-language X account, giving founder Sheldon Xia and partner Yi Li until Aug. 19 to address frozen funds, delayed withdrawals, and unpaid salaries.
- •The group demanded detailed disclosures on assets, liabilities, wallet addresses, and repayment reserves, plus an explanation of when executives learned of withdrawal problems and who authorized the restrictions.
- •Xia denied the allegations as fabricated rumors, said the company had collected evidence for a police report, and announced plans to send a legal notice to X seeking technical and account verification of the posts.
- •On-chain investigator ZachXBT challenged Xia's response, arguing that BitMart should return customer funds rather than issue vague statements if it has sufficient liquidity.
- •BitMart, which lost an estimated $150–200 million in a December 2021 hot-wallet compromise, began winding down on July 26, will halt all trading on Aug. 26, and will end operations on Jan. 31, 2027, with withdrawals remaining open until closure.
BitMart is facing allegations of asset mismanagement after people claiming to be employees posted demands through the exchange’s Chinese-language X account. The group asked for answers about frozen customer funds, delayed withdrawals, and unpaid salaries by Aug. 19.
The posts were directed at founder Sheldon Xia and partner Yi Li. The group called for detailed financial disclosures and a workable repayment plan for affected users.
夏爾特、李伊，你們欠全球 BitMart 用戶跟員工一個交代。 @sheldonbitmart @BitMartExchange 到現在還是一堆用戶領不回自己的錢，一堆員工連最後一個月的薪水、該拿的補償都沒拿到。 這不是丟一句「停止營運」就可以當作沒事的商業糾紛。 對很多普通用戶來說，鎖在 BitMart… pic.twitter.com/vhiJoyo0mh — BitMart 币市 (@BitMart_zh) August 17, 2026
夏爾特、李伊，你們欠全球 BitMart 用戶跟員工一個交代。 @sheldonbitmart @BitMartExchange 到現在還是一堆用戶領不回自己的錢，一堆員工連最後一個月的薪水、該拿的補償都沒拿到。 這不是丟一句「停止營運」就可以當作沒事的商業糾紛。 對很多普通用戶來說，鎖在 BitMart… pic.twitter.com/vhiJoyo0mh
The identities of the people controlling the account remain unverified, and the allegations have not been independently confirmed. Xia rejected the claims as fabricated rumors.
The dispute marks another test of customer fund access at BitMart, an exchange founded in 2017 and registered in the Cayman Islands. In December 2021, a compromise of the platform’s hot wallets drained customer assets that blockchain security firms estimated at $150 million to $200 million, and the exchange pledged to reimburse affected users in phases.
Why BitMart Faces Fund Demands Before Aug. 19
The group said management should disclose where customer funds are held. That information, according to the posters, should include assets and liabilities, wallet addresses, and reserves available for repayment.
Also Read: BitMart Announces Exchange Shutdown as BMX Token Crashes 70%
They said such disclosures would help determine whether BitMart has enough assets to cover customer balances. The group also wanted an explanation for why many users have been unable to withdraw their funds.
Another demand asked when executives first learned about the withdrawal problems and who authorized the restrictions.
The posters also called for investigations into all agreements involving customer assets. They specifically cited reports involving affiliated accounts, associated firms, trusts, and other funding methods.
However, no records were provided to support those reports. The posters said each agreement should be examined before identifying those responsible for any failure tied to it.
Unpaid salaries were another major concern. According to the post, some employees had not received their salaries or severance payments.
The fifth demand asked Xia and Li to present a solution for repaying customers by Aug. 19.
Xia Denies Claims as BitMart Wind-Down Continues
Xia denied the claims soon after they surfaced, saying the company had gathered evidence for a police report.
He also said BitMart would issue a legal notice to X seeking technical and account verification related to the posts.
Xia stressed that customer assets have priority. He added that employees would not receive preferential treatment in repayments over users.
On-chain investigator ZachXBT, who has traced funds in previous exchange breaches, challenged that response, saying BitMart should return the funds rather than post vague statements if it had sufficient liquidity.
Customers also asked ZachXBT to look into the situation, citing problems with account access and withdrawals.
BitMart began winding down its services on July 26. Since then, it has stopped new user registration, deposits, and spot orders for cryptocurrencies and fiat currencies.
Futures accounts were placed in reduced-only mode on that date, allowing customers to reduce existing positions without opening new ones.
All spot, futures, and other trading will stop on Aug. 26. The platform’s operations will end on Jan. 31, 2027.
Withdrawals will remain available until the exchange closes, although requests may be subject to identity, source-of-funds, sanctions, and security checks.
Users have reported withdrawal delays during the wind-down, although those complaints remain unverified. Fund access has shaped previous exchange failures as well: FTX froze withdrawals ahead of its 2022 collapse, and Mt. Gox creditors waited roughly a decade for court-administered repayments after that exchange failed in 2014.
The group’s Aug. 19 deadline comes one week before BitMart ends trading on Aug. 26.
