Crypto exchange BitMart faces mounting pressure from users and staff after a public statement circulated on X demanded full transparency on trapped customer funds and unpaid salaries by August 19, 2026.
The ultimatum arrives weeks into the platform’s announced orderly wind-down, with many account holders reporting frozen or delayed withdrawals and former employees claiming they have not received final paychecks.
Founder Sheldon Xia has rejected the claims as fabricated, stating that the Chinese-language account used to issue the demands was compromised and that the content did not come from current employees. He has indicated plans to involve law enforcement and seek technical forensics from X.
On-chain investigator ZachXBT has also publicly challenged the exchange’s response, arguing that genuine liquidity would allow immediate returns of user assets rather than vague assurances.
Public Accountability Demand Issued
On August 17, the account @BitMart_zh, presenting itself as representing BitMart users and employees, published a detailed five-point open letter addressed to Sheldon Xia and his partner Nancy (Yi) Li.
The statement asserts that large numbers of customers remain unable to access their balances while rank-and-file staff have gone without their last month’s wages and severance. It frames the situation as more than a routine business closure, noting that trapped funds often represent life savings for ordinary users and that unpaid salaries affect employees’ ability to cover basic living costs.
The letter requires verifiable proof of reserves if the platform claims sufficient assets to cover all balances. It calls for disclosure of wallets, total assets, liabilities, and usable reserves subject to third-party verification.
Additional demands include an explanation of who authorized withdrawal restrictions and when management first became aware the platform could no longer process requests normally; a full tracing of any accounts allegedly linked to management that may have held tens of millions of dollars and conducted batch withdrawals; immediate settlement of employee compensation; and a concrete repayment plan detailing remaining assets, recovery ratios, priority order, start and end dates, oversight mechanisms, and acceptance of independent audits. Failure to respond fully by August 19, the statement warns, will result in materials being submitted to regulators, law enforcement, lawyers, and media across multiple jurisdictions.
Wind-Down Timeline and Persistent Withdrawal Problems
BitMart publicly announced the phased cessation of its trading platform on July 26, 2026. New registrations, deposits, and order placements were halted that day. Spot and futures trading are scheduled to end on August 26 at 01:00 UTC, with a recommended cutoff for withdrawal requests of 05:00 UTC the same day. Full platform operations are set to conclude on January 31, 2027, after which limited login access will remain available for historical records and residual withdrawal processing.
Despite official assurances that withdrawals remain open throughout the process, users have reported prolonged delays, manual compliance reviews, and blocked requests. Some large holders and market-making teams have described assets ranging from tens of thousands to millions of dollars remaining inaccessible.
BitMart attributes slower withdrawal processing to enhanced identity verification, source-of-funds checks, wallet ownership confirmation, and sanctions screening. Separate notices previously required U.S.-linked accounts to complete withdrawals by early August. On-chain observers have recorded intermittent withdrawal activity, yet complaints of bottlenecks continue to surface.
The exchange, registered in the Cayman Islands and operating for approximately nine years, previously compensated users after a major hot-wallet breach in 2021 that resulted in losses estimated between $150 million and $196 million. That history has heightened scrutiny of its current liquidity claims.
Management Rejects Claims and Vows Legal Action
Sheldon Xia responded on August 17 by dismissing the circulating accusations as rumors. In a statement, he said the Chinese official account had been hacked and that the open letter was not published by any current employee.
He added that evidence had been collected and that police reports would be filed, along with a lawyer’s letter to X requesting data forensics. Xia reiterated that the core team continues asset inventory, consolidation, and system maintenance with the goal of an orderly process, and he emphasized that employee claims do not take priority over customer assets.
Earlier, on August 8, Xia had denied any misappropriation of funds or plans to “run away,” stating the platform would not abandon its obligations and was considering independent third-party auditors and court involvement for a transparent report. No detailed proof-of-reserves figures, total liability numbers, or fixed repayment schedule matching the August 19 demands have been published as of this writing.
ZachXBT Challenges Liquidity Claims
In a direct reply to Xia’s denial, prominent on-chain investigator ZachXBT posted a pointed critique. “If you actually have the liquidity then simply return the funds to everyone instead of posting vague statements?” he wrote. “Your actions have caused real people to lose access to funds with little transparency….” The comment quickly gained significant engagement, and underscored broader skepticism in the crypto community regarding exchanges that announce orderly exits while users report restricted access.
ZachXBT’s intervention amplifies pressure on BitMart at a moment when trust in centralized platforms remains fragile. As of publication, BitMart has not issued a detailed public reply to the investigator’s specific challenge.
As the August 19 deadline approaches and the August 26 trading halt nears, users with remaining balances are being urged by the platform to complete verification and submit requests promptly. Official notices caution against third-party services promising priority processing, warning of elevated scam risks.
Whether BitMart produces the requested asset disclosures and executable repayment plan—or escalates its legal response—will shape the final chapter of its operations and influence perceptions of accountability across the wider digital-asset industry. Further developments are expected through official channels in the coming days.
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