BitMart Account Challenges Founder Over Frozen Funds, Unpaid Wages
Crypto exchange BitMart had presented restructuring and an orderly wind-down as a path through its operational difficulties, but reports of withdrawal restrictions, unpaid wages and limited reserve transparency have raised doubts about its solvency. The dispute became more serious after the company’s official Chinese-language account appeared to turn against management, amplifying concerns over whether BitMart can repay customers and meet payroll obligations.
The account, suspected of being controlled by employees, demanded that founder Sheldon Xia disclose asset reserves, explain blocked withdrawals and resolve unpaid salaries by August 19. Reports said about $10 million in user assets had been frozen and that nearly all rank-and-file employees were owed wages. Xia rejected calls for an independent audit and described the allegations as “fabricated rumors,” leaving BitMart’s repayment capacity and planned wind-down under scrutiny.
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The history behind this eventBitMart Founder Denies Exit as Withdrawal Crisis Deepens
BitMart’s surprise announcement on July 26 that it would begin an orderly shutdown triggered withdrawal delays and renewed scrutiny of customer asset safety. Concerns intensified after a market maker alleged the cryptocurrency exchange was insolvent, while reports said an account holding assets worth tens of millions of dollars had been frozen. The claims have put BitMart’s liquidity, reserves and ability to repay users at the center of the dispute.
Founder Sheldon Xia broke his silence after being out of public view for nearly two weeks, saying the team had not fled and would not do so. He said BitMart was conducting an asset inventory and preparing an orderly wind-down, while considering a third-party audit. Users continued posting screenshots of stalled withdrawals and demanded a clear timetable, disclosure of available assets and details of the exchange’s repayment plan.
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