BitMart faces Aug. 19 deadline as users, staff demand fund disclosure

BitMart faces an Aug. 19 deadline to disclose wallets, liabilities and usable reserves after users and staff demanded answers over blocked withdrawals and unpaid salaries.

A public statement posted on X on Aug. 17 and addressed to founder Sheldon Xia and business partner Yi Li called for verifiable asset disclosure, an independent third-party audit and a detailed repayment plan. "Work done deserves pay. Compensation owed must be paid," the statement said.

The exchange announced its wind-down on July 26, with all trading services ending Aug. 26 and full closure by Jan. 31, 2027. BMX crashed 46 percent after the announcement, while Ethereum withdrawals hit a 2026 high within days. The demands follow a 2021 security breach that saw roughly $196 million in crypto stolen from hot wallets, after which the exchange said affected customers would be compensated.

Xia responded by saying the company would file a police report and pursue data forensics, but offered no reserve figures or repayment timeline. On-chain investigator ZachXBT pushed back: "If you actually have the liquidity then simply return the funds to everyone instead of posting vague statements?"

Can BitMart prove its reserves by Aug. 19?

The open letter asked who decided to restrict withdrawals, when management first became aware of the problems, and whether BitMart continued encouraging customers to deposit, trade or leave assets on the platform after funding issues emerged. It also sought an investigation into accounts allegedly associated with Li that may have held assets worth tens of millions of dollars, while explicitly stating no criminal characterization should be applied before evidence is established.

Employee payments form a separate part of the demands. The statement argued that rank-and-file staff were not responsible for company financial decisions and should not absorb losses from management choices. BitMart had addressed separate withdrawal complaints before announcing its shutdown. In June, the exchange said reports of users being unable to withdraw were mainly connected to risk controls targeting what it described as an organized scheme designed to exploit platform activity subsidies.

If BitMart fails to respond by the deadline, the group said it would submit materials to law enforcement, regulators, lawyers and media organizations in multiple jurisdictions. The dispute raises broader questions about centralized exchange custody. Binance's July reserve report showed customer Bitcoin holdings increasing by 7,715 BTC during June, while Bybit and OKX reported higher customer BTC balances in their June snapshots — but none of these reports constitute complete financial audits.

This article is for informational purposes only and does not constitute investment advice.