Key facts
- BitMart employees have taken control of the exchange's Chinese X account to demand answers from founder Sheldon Xia.
- Employees are demanding disclosure of user fund locations, liabilities, liquid reserves, and a repayment plan by August 19.
- The exchange announced a cessation of trading operations on July 26, 2026, followed by a withdrawal freeze.
- Failure to comply with the demands will result in evidence being submitted to global regulators, law enforcement, and media.
- The situation highlights counterparty risk for platforms without independently audited proof of reserves.
BitMart employees have publicly confronted founder Sheldon Xia via the exchange's Chinese official X account, demanding transparency regarding a withdrawal freeze, unpaid salaries, and the status of locked user funds by August 19, 2026. Failure to meet these demands will prompt escalation to global regulators and law enforcement.
The crisis began on July 26, 2026, when BitMart announced the cessation of its trading platform, suspending new registrations, deposits, and order placements. Full platform operations are slated to close by January 31, 2027. The native BMX token saw a significant drop of approximately 58% within 24 hours of the announcement.
Users discovered that the withdrawal freeze was more severe than initially disclosed, with requests either remaining pending or showing as completed without any on-chain transaction hash. On-chain tracker Lookonchain reported that only about $805,000 was withdrawn across approximately 58 wallets in the first 24 hours, including an eight-hour period with zero withdrawals.
This situation echoes a past incident in December 2021, when hackers stole approximately $196 million from BitMart's hot wallets. CEO Sheldon Xia had then promised compensation from company funds. The current freeze raises similar concerns about the safety of user assets.
Xia broke his silence on August 8, assuring users that the platform would not abscond and that assets were being inventoried, mentioning the possibility of independent auditors without providing proof of reserves or a timeline. Separately, Global CEO Nathan Chow stated he was terminated around July 24 and learned of the wind-down publicly.
On August 17, employees published an open letter detailing five demands: verifiable evidence of user asset locations, total liabilities, and liquid reserves; a clear explanation for the withdrawal freeze and whether deposits were accepted knowingly; full disclosure of related company accounts; immediate payment of outstanding employee salaries; and an independently audited repayment plan with timelines. The letter warns of submitting evidence to regulators, law enforcement, and media if these demands are not met by August 19.