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Key Takeaways
- Sheldon Lee called claims of frozen withdrawals and unpaid employees fabricated, saying BitMart’s Chinese-language account was hacked.
- Users and on-chain investigator ZachXBT are demanding proof of reserves or fund access before BitMart’s August 26 trading shutdown.
- A restructuring proposal from Echo Base, including debtor-in-possession financing, went unanswered by BitMart.
BitMart founder Sheldon Lee dismissed as fabricated a post on the exchange’s Chinese-language X account alleging that customers cannot withdraw their funds and that some employees went unpaid in July.
Lee said the account had been hacked. Users and an on-chain investigator are demanding that BitMart restore withdrawals or open its books to an independent audit before the exchange’s final trading day on August 26.
What the Disputed Post Alleged
The post on BitMart’s Chinese-language account called on Lee and business partner Yi Li to disclose wallets, assets, liabilities, and usable reserves to independent verification, giving Lee until August 19 to respond.
The post described the situation in blunt terms, saying users still cannot access their own money. It said employees have not received last month’s salary or compensation owed to them. The post also argued the exchange could not resolve that with a single wind-down statement.
Lee’s Response
Lee responded on his own X account without addressing the withdrawal or payroll claims directly. He said the exchange had collected evidence showing the content was fabricated and that BitMart would file a police report and send a lawyer’s letter to X during U.S. daytime hours, demanding a technical and forensic review of the account.
On the question of unpaid staff, Lee said employee assets are not prioritized over client assets, adding that everyone at the exchange is treated as a client with no special privileges.
The Wind-Down Timeline
BitMart announced on July 26 that it would wind down its trading platform after nine years of operation. The exchange stopped accepting new registrations, deposits, and new trading orders that day, with futures accounts moved to reduce-only mode.
All trading, spot and derivatives, is scheduled to end August 26, and the platform is set to formally cease operations on January 31, 2027. BitMart said withdrawals would stay open throughout the wind-down but warned that requests could face additional review, including identity verification, device and IP checks, withdrawal-address screening, and sanctions checks.
The exchange’s token, BMX, fell about 58% in the 24 hours after the shutdown announcement, extending a decline of roughly 70% over the prior year. BitMart reported $1.6 billion in 24-hour trading volume around the time of the announcement, a jump the exchange did not explain.
Users and an Investigator Push Back
Several users have posted about difficulty accessing funds since the July 26 announcement. One user said their assets had been inaccessible since that date and that a dedicated account manager removed them from a support Telegram channel the day withdrawals stalled.
Another user told Lee directly that his hacking claim did not answer the question users have been asking since July 26: when they would be able to withdraw their funds.
On-chain investigator ZachXBT also pushed back on Lee’s response, saying that if the exchange has the liquidity, it should simply return funds instead of issuing vague statements.
A Restructuring Offer Went Unanswered
Roshan Dharia, chief executive of distressed investment firm Echo Base, said in an interview that his firm proposed a funded restructuring package to BitMart, including debtor-in-possession financing and equity at emergence, underwritten by Echo Base as a claimholder. He said BitMart had not responded to the proposal.
“A custodial book this size can’t be resolved consensually, because you can’t reliably reach such a dispersed retail customer base, and every user you miss keeps a claim in full. There is no version of this that ends well without going to court.”
He added that the only question for the board is whether BitMart walks in with a plan and a funded sponsor, or is taken there by its own claimants.
What Happens Next
The unidentified account behind the original post said that if Lee does not provide a verifiable response by the August 19 deadline, it would submit all available data, fund leads, and evidence to law enforcement, regulators, lawyers, and media outlets worldwide.
BitMart’s shutdown followed a similar announcement days earlier from derivatives exchange BitMEX, which said it would end operations after 11 years.
