BitMart Demands Founder Disclose Funds, Wallets & Repayment Plan by Aug 19

BitMart employees have taken control of the exchange’s Chinese official X account to publicly confront founder Sheldon Xia.

They are demanding transparent answers on the BitMart withdrawal freeze, unpaid salaries, and the fate of locked user funds by August 19, 2026, or they will escalate to regulators and law enforcement worldwide.

From Orderly Wind-Down to Open Revolt: What Triggered the Ultimatum

The crisis began on July 26, 2026, when BitMart announced a cessation of its trading platform. New registrations, deposits, and order placements were suspended immediately.

All spot and futures trading was set to end on August 26, 2026. Full platform operations would close on January 31, 2027. The native BMX token dropped roughly 58% within 24 hours of that announcement.

Users quickly discovered the BitMart withdrawal freeze was far worse than disclosed. Requests sat in pending status or showed as completed with no on-chain hash.

On-chain tracker Lookonchain noted only approximately 58 wallets withdrew a combined $805,000 in the first 24 hours after the announcement.

That figure included an 8-hour window with zero withdrawals processed. Projects such as OpenGradient and Scandic Coin went public with reports of stuck balances and unprocessed requests.

This is not the first time trust in BitMart has been tested. In December 2021, hackers exploited a stolen private key to drain approximately $196 million from the exchange’s Ethereum and Binance Smart Chain hot wallets.

PeckShield first flagged those outflows. CEO Sheldon Xia confirmed the breach and promised compensation from company funds.

The BitMart withdrawal freeze of 2026 revives the same fundamental question: can users trust the platform’s word on fund safety?

On August 8, Xia broke his silence, insisting the platform had not and would not run away, and that assets were being inventoried.

He mentioned the possibility of independent auditors but offered no proof of reserves, concrete figures, or repayment timeline.

Separately, global CEO Nathan Chow stated he was terminated around July 24 and learned of the wind-down publicly, claiming no role in the decision.

The compliance pressure mounting on exchanges at this period extends beyond BitMart. As Bitget Restricts HTX, EXMO and Other Entities Amid Sanctions Crackdown.

Mid-tier platforms facing operational stress are now under sharper regulatory scrutiny across the industry. Investor confidence in unaudited platforms is eroding quickly.

Five-Point Demand and What It Means for BitMart Holders

On August 17, the BitMart Chinese official account (@BitMart_zh) published an open letter directly addressing Xia and his partner Nancy Li.

The letter appeared in English shortly after in the same thread. It states that ordinary users still cannot access their funds and many employees have not received final pay.

The situation, the letter argues, is not a routine commercial closure. People’s life savings and basic livelihoods are at stake.

The letter issues five specific demands with a response deadline of August 19. First, verifiable evidence of where user assets are, including public wallet addresses, total liabilities, and usable liquid reserves.

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

Second, a clear explanation of why the BitMart withdrawal freeze occurred, who decided it, and whether management kept accepting deposits after knowing normal processing was impossible.

Third, full disclosure of any related companies, trusts, or accounts linked to Li that allegedly held tens of millions with batch withdrawal records.

Fourth, immediate payment of outstanding employee salaries. Fifth, a concrete, independently audited repayment plan with timelines and a supervision mechanism.

The letter warns that failure to respond will result in submission of evidence and fund trails to regulators, law enforcement, lawyers, and media worldwide.

It tags @cz_binance, @justinsuntron, @brian_armstrong, @VitalikButerin, @zachxbt, and @lookonchain, among others.

For investors, this episode reinforces a lesson that has echoed since the FTX collapse in 2022. Platforms without independently audited proof of reserves covering both assets and liabilities carry real counterparty risk.

This risk is highest during wind-downs when liquid reserves matter most.

As Binance Founder CZ Notes the Mounting Reality Facing Crypto Wealth, where assets are custodied matters as much as what those assets are worth.

Holders with balances on BitMart face deep execution and recovery uncertainty. BMX remains highly speculative.

See our full comparison of crypto copy trading platforms for hands-off investing.