TLDR
- BitMart users and employees have demanded reserve disclosures and a repayment plan by Aug. 19
- Founder Sheldon Lee dismissed the claims as “fabricated rumors” from a hacked account
- Users report being unable to withdraw funds since the July 26 shutdown announcement
- Employees say they have not received July salaries or owed compensation
- If BitMart does not respond by the deadline, evidence may be sent to regulators and law enforcement
BitMart is facing growing pressure from users and employees after the crypto exchange announced it was winding down operations. A public statement on X gave founder Sheldon Lee until Aug. 19 to respond to demands for financial transparency.
🚨BREAKING: BitMart founder denies an explosive letter attacking management, claiming hackers posted it through the company’s Chinese X account.
An open letter, apparently posted by employees, demanded answers from Sheldon Xia and Yi Li by August 19 about:
– Where users’ money… https://t.co/kOYdVVG6fj pic.twitter.com/ARuLs9yKaT
— Coin Bureau (@coinbureau) August 17, 2026
The open letter, posted on BitMart’s Chinese-language X account, called on Lee and business partner Yi Li to disclose wallets, assets, liabilities, and usable reserves. It also asked the exchange to accept an independent third-party audit and publish a detailed repayment plan.
Lee responded by saying the account had been hacked and called the claims “fabricated rumors.” He said the exchange would file a police report and send a legal letter to X. He did not directly address the demands.
BitMart announced on July 26 that it would stop new registrations, deposits, and trading activity. The exchange said Aug. 26 would be the final trading day, with operations ending entirely on Jan. 31, 2027.
Withdrawals Still Blocked for Many Users
Since the shutdown announcement, users have continued reporting that they cannot access their funds. One user, known as BeardStaff, said their assets had been inaccessible since July 26 and that a VIP manager removed them from a Telegram group the same day withdrawals stalled. They claimed to have $10 million locked on the platform.
Onchain investigator ZachXBT responded to Lee’s statement, saying that if the exchange had the funds, it should simply return them rather than posting vague statements.
BitMart had previously said withdrawals would remain available but could be subject to additional verification checks. The exchange also warned that high request volumes could slow processing times.
Employees and Restructuring
Employees are also named in the demands. The open letter said some staff had not received their July salaries or compensation owed after the shutdown decision. Lee said employee assets are not treated differently from client assets, stating everyone is a client with no special privileges.
Roshan Dharia, CEO of distressed investment firm Echo Base, told CoinDesk that his firm offered BitMart a funded restructuring package, including debtor-in-possession financing. He said BitMart has not responded.
Dharia said the situation cannot be resolved without court intervention given the size of the customer base. “There is no version of this that ends well without going to court,” he said.
The open letter also asked Yi Li to explain the source of funds in accounts allegedly linked to her, which the statement said may have held tens of millions of dollars. The authors said this was not proof of wrongdoing and asked Li to publicly clarify.
If no verifiable response is received by the Aug. 19 deadline, the authors said they would submit materials to law enforcement, regulators, lawyers, and media in multiple jurisdictions.
BitMart previously suffered a $196 million hack in December 2021, after which it said affected customers would be compensated.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
