One of the exchange’s founders said the Chinese-language account had been compromised and was not being operated by current employees.
BitMart’s Chinese-language account has demanded answers from founders Sheldon Lee and Yi Li over frozen user funds and unpaid employee salaries, giving them until August 19 to respond publicly.
The statement also calls for verifiable asset disclosures and a detailed repayment plan as questions grow over what happened to funds held on the exchange.
BitMart Faces Questions Over User Funds and Withdrawals
In a post published on August 17, the account said many users still cannot withdraw their funds, while some employees have yet to receive their final salaries or compensation.
“This isn’t some business dispute that can be brushed off with a single ‘ceasing operations’ statement,” it wrote.
The statement demanded evidence showing BitMart’s current wallets, assets, liabilities, and usable reserves. It also asked management to explain who restricted withdrawals, when the decision was made, and when executives first knew users could no longer withdraw normally.
The account further questioned whether BitMart continued encouraging deposits or trading after management became aware of withdrawal problems. It called for an investigation into affiliated accounts, related companies, trusts, and other arrangements involving BitMart-related funds. The statement also raised questions about accounts allegedly linked to Yi Li that may have held tens of millions of dollars and recorded batch withdrawals.
However, the account stressed that the allegations had not been proven and said that potentially criminal conduct should not be alleged before the evidence is complete. It nevertheless demanded explanations about the source and destination of funds if the accounts existed.
Employee compensation was another focus, with the post contending that rank-and-file workers did not decide how company funds were managed or when operations would end; thus, salaries and outstanding compensation should be paid in full.
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The August 19 deadline also covers a repayment plan detailing remaining assets, total liabilities, expected user recoveries, repayment order, start and completion dates, oversight arrangements, and potential independent audits.
Sheldon Lee responded, saying the material cited by the Chinese account consisted of “fabricated rumors.” According to him, BitMart had collected evidence and would file a police report during US daytime hours, alongside a lawyer’s letter to X seeking technical and data forensics.
Blockchain investigator ZachXBT questioned why BitMart would not simply return the funds if it had sufficient liquidity. He also criticized the lack of transparency around users’ access to their money.
But in a later update, Lee claimed that the account had been hacked and the issues raised had not been posted by current employees.
Shutdown Timeline Adds Pressure
The dispute comes shortly before BitMart’s planned shutdown, with a July 26 notice informing users that the exchange would discontinue trading services on August 26, and its official shutdown is scheduled for January 31, 2027.
That announcement placed BitMart alongside other crypto platforms preparing to close during a difficult market period, including BitMEX, which told its customers on July 23 that it would stop operations by September 23. According to analysts like Ran Neuner, the exchange shutdowns are part of a broader market clean-up.
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