BitMart Account Demands Founder Explain Funds, Xia Calls Post Fake

BitMart’s official Chinese-language X account has publicly demanded that founder Sheldon Xia explain the whereabouts of user funds and produce a repayment plan by Wednesday.

The account said in a Monday post that some users remained unable to withdraw funds and that some employees had not received their final salary or compensation, while calling on Xia to disclose BitMart’s wallets, assets, liabilities and available reserves, according to a machine translation of the post.

The post said if Xia does not provide a verifiable asset disclosure and repayment plan by the deadline, it would continue to submit evidence to regulators, law enforcement, lawyers and the media.

It was unclear who authored Monday’s post or whether the account remained under the company’s control. Cointelegraph contacted BitMart for comment but did not immediately receive a response.

BitMart announced on July 26 that it would wind down its exchange as 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.

The exchange has stopped accepting new deposits and registrations as part of the shutdown and warned that some withdrawals could face additional compliance and security reviews.

Related: BitMart withdrawals appear to slow following wind-down announcement

Claims on official account called “fabricated”

Xia responded in an X post on Monday, calling the claims in the post “fabricated rumors” and saying evidence had been preserved, according to a machine translation.

“We have collected full evidence of the content on X, all of which is fabricated rumors. During daytime US time, we will file a police report and send a lawyer’s letter to X, demanding technical and data forensics,” Xia said.

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 previously denied that BitMart had misappropriated user assets. On Aug. 8, Xia told users not to believe unverified claims or screenshots purportedly provided by 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.

The tracked wallets may not represent all assets controlled by BitMart, and it is unclear how much of the decline reflects customer withdrawals, asset consolidation or transfers to other wallets.

This is a developing story.

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