BitMart Chinese-Language X Account Demands Founder Disclose…

BitMart's wind-down has taken an unusual turn after the exchange's Chinese-language X account publicly challenged founder Sheldon Xia to disclose the company's wallets, assets, liabilities and reserves, and set a Wednesday deadline for a repayment plan. The account also said some customers still cannot withdraw funds and some former employees have not received final compensation. Xia dismissed the posts as fabricated rumors, said evidence had been preserved and announced plans to file a police report and seek account information from X through legal channels.

The dispute comes less than two weeks before BitMart is scheduled to end all trading on Aug. 26. The exchange announced July 26 that it would wind down operations after reviewing its operating conditions, market environment and future strategy. New registrations and deposits have been stopped, and new futures positions, spot orders and automated trading services have been restricted. The trading platform is expected to fully cease operations on Jan. 31, 2027. Withdrawals remain available but may be subject to manual review, including identity verification, device and IP checks, address reviews, source-of-funds analysis, sanctions screening and additional documentation.

Wallet data adds another layer. According to blockchain analytics platform Arkham, wallets attributed to BitMart held about $36.5 million in crypto assets on Monday, down from roughly $71 million when the wind-down was announced and about $102 million on July 6. The decline alone does not prove funds were lost or misappropriated. Falling balances during a shutdown can reflect customers successfully withdrawing, transfers between custody addresses, or movements to wallets not yet tagged by analytics services. Blockchain labels may also capture only part of an exchange's holdings, so without liability data the visible balances show just one side of the financial picture.

Regulators have also weighed in. On Aug. 6, the Cayman Islands Monetary Authority said BitMart and several associated GBM entities had never been registered, licensed or authorized to provide virtual asset services in or from the Cayman Islands.

Xia previously tried to reassure customers on Aug. 8, denying that BitMart had disappeared with user funds or misappropriated assets and saying the firm was conducting an asset inventory, consolidating funds and performing system maintenance. The latest public dispute makes those reassurances harder to evaluate, since customers face conflicting claims over fund status and company authority. With trading set to end within two weeks, the immediate concern is whether delayed withdrawals can be resolved before the platform moves deeper into shutdown. A fuller asset-and-liability disclosure, clear identification of official communication channels and a timetable for pending reviews would help restore confidence, though BitMart has not provided such details.