TLDR
- Users and staff have issued an ultimatum demanding reserve transparency and repayment terms by August 19
- Sheldon Lee, BitMart’s founder, claims the demands originated from a compromised social media account
- Multiple users report fund withdrawal failures following the July 26 operations wind-down notice
- Staff members claim unpaid July wages and outstanding severance payments
- Failure to meet the deadline may trigger reports to authorities and regulatory bodies across jurisdictions
The cryptocurrency exchange BitMart finds itself under mounting scrutiny from its user base and workforce following its recent announcement to cease operations. A coordinated statement published on X has set a firm August 19 deadline for founder Sheldon Lee to address transparency concerns.
The public appeal, shared through BitMart’s Chinese-language X profile, demands that Lee and his business associate Yi Li provide full disclosure of wallet addresses, asset holdings, outstanding debts, and available reserves. The statement further requests acceptance of an external forensic audit and publication of a comprehensive repayment timeline.
In his response, Lee characterized the account as compromised and dismissed the allegations as “fabricated rumors.” He indicated plans to file a police complaint and pursue legal action against X. Notably, he avoided directly responding to any of the specific demands raised.
BitMart revealed on July 26 its intention to discontinue new account registrations, deposit services, and trading functionality. According to the platform’s announcement, August 26 will mark the last day for trading, with complete operational cessation scheduled for January 31, 2027.
Persistent Withdrawal Access Issues
Following the closure announcement, numerous users have documented their inability to retrieve their holdings. A user identified as BeardStaff reported complete fund inaccessibility beginning July 26, claiming their VIP account manager removed them from a Telegram communication channel coinciding with the withdrawal suspension. They allege approximately $10 million remains trapped on the platform.
Blockchain investigator ZachXBT challenged Lee’s response, suggesting that if the platform possessed adequate funds, it should prioritize returning customer assets instead of issuing ambiguous public statements.
BitMart had initially stated that withdrawal functionality would continue operating but might require enhanced identity verification procedures. The platform also cautioned that elevated request volumes could result in extended processing delays.
Workforce Concerns and Restructuring Proposals
The demands also highlight employee grievances. The public letter indicates that certain staff members have not received July compensation or settlement payments following the shutdown announcement. Lee maintained that employee funds receive identical treatment to customer assets, asserting that all parties are considered clients without preferential status.
Roshan Dharia, who leads distressed asset firm Echo Base, informed CoinDesk that his organization presented BitMart with a fully financed restructuring proposal, including debtor-in-possession funding arrangements. According to Dharia, the exchange has not acknowledged the offer.
Dharia emphasized that the situation’s complexity necessitates judicial oversight given the extensive customer base involved. “There is no version of this that ends well without going to court,” he stated.
The public appeal additionally requested Yi Li to provide transparency regarding fund origins in accounts purportedly connected to her, which the statement suggested may contain tens of millions in value. The authors clarified this was not an accusation of misconduct but a request for public clarification.
Should no substantive response materialize by the August 19 cutoff, the statement’s authors pledged to forward documentation to law enforcement agencies, financial regulators, legal counsel, and media organizations across multiple countries.
The exchange experienced a significant security breach in December 2021, resulting in $196 million in losses, after which BitMart pledged full compensation to affected users.
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