BitMart’s Chinese X account asks Sheldon Xia to explain user funds as shutdown continues

BitMart’s official Chinese-language X account publicly demanded that founder Sheldon Xia disclose the status of user funds and present a repayment plan by Wednesday. For PSPs and high-risk operators, the relevant part is not the drama on X but the operational signal: withdrawals are still blocked for some users, while the exchange is already in wind-down mode.

1. The account said in a Monday post that some users still could not withdraw funds and that some employees had not received their final salary or compensation. It also asked Xia to disclose BitMart’s wallets, assets, liabilities, and available reserves, according to a machine translation of the post.
2. The same post said that if Xia does not provide a verifiable asset disclosure and repayment plan by Wednesday, the account will continue submitting evidence to regulators, law enforcement, lawyers, and the media. It was not clear who authored the post or whether the account was still under the company’s control.
3. BitMart said on July 26 that it would wind down its exchange after its BMX token plunged and users reported withdrawal delays. The company said trading on the platform will end on Aug. 26 and operations will cease on Jan. 31.
4. As part of the shutdown, BitMart stopped accepting new deposits and registrations and warned that some withdrawals could face additional compliance and security reviews. That is the kind of line that gets attention from merchants and PSPs fast, because it means settlement and exit handling are no longer routine operations.
5. Xia rejected the claims in a Monday X post, calling them “fabricated rumors,” and said evidence had been preserved. He said BitMart would file a police report during daytime US time and send a lawyer’s letter to X requesting technical and data forensics.

Xia also said employees were not being prioritized over customers in the handling of assets, adding that “everyone is a client” and there were no privileges. He had previously denied that BitMart misappropriated user assets, and on Aug. 8 he told users not to believe unverified claims or screenshots allegedly from current or former employees.

Wallets attributed to BitMart by Arkham held about $36.5 million in crypto assets as of Monday, down from roughly $71 million on July 26 and $102 million on July 6. Arkham’s tracked wallets may not reflect all assets controlled by BitMart, and the source notes it is unclear how much of the decline came from customer withdrawals, asset consolidation, or transfers to other wallets.