BitMart Founder Questions Funds, Xia Rejects Claims as Fabricated

BitMart’s official Chinese-language X account has demanded that exchange founder Sheldon Xia explain where user funds are, provide a verifiable disclosure of assets, and outline a repayment plan by Wednesday. The dispute comes as the troubled platform continues its wind-down process amid widely reported withdrawal delays and the earlier collapse in BMX token value.

In a Monday post, the account said some users were still unable to withdraw funds and that some employees had not received their final salary or compensation. It urged Xia to publish details including BitMart’s wallets, assets, liabilities, and available reserves, warning it would escalate the matter to regulators, law enforcement, lawyers, and the media if he did not meet the deadline. Cointelegraph previously reported that BitMart announced on July 26 it would wind down the exchange, with trading ending Aug. 26 and operations ceasing on Jan. 31.

Key takeaways

• BitMart’s official Chinese X account is demanding Sheldon Xia disclose BitMart’s wallet holdings and provide a repayment plan by Wednesday.
• The post alleges some users still cannot withdraw and that some employees have not received final compensation.
• BitMart has already entered a formal wind-down process, with trading set to end Aug. 26 and operations scheduled to stop Jan. 31.
• Sheldon Xia rejected the claims, saying the account’s accusations are “fabricated rumors,” and said he would pursue police and legal action.
• Arkham-tracked BitMart-attributed wallets reportedly fell from about $102 million (July 6) to around $36.5 million as of Monday, though the reasons are unclear.

Deadline set amid ongoing withdrawal complaints

BitMart’s latest challenge is framed around user access to funds and transparency. According to a machine translation of the account’s post, it said some users remained unable to withdraw and that internal compensation issues persisted for at least some staff members.

The account’s demand is not limited to a general explanation; it calls for a detailed and verifiable disclosure, including wallets, assets, liabilities, and reserves. It also set a clear escalation threat: if Xia does not deliver by the stated deadline, the account said it would submit evidence to regulators, law enforcement, legal representatives, and media outlets.

Cointelegraph attempted to contact BitMart for comment following the Monday post but did not immediately receive a response. It also remains unclear who authored the message, or whether the account is still operated under BitMart’s corporate control.

Wind-down timeline already in motion

These events are unfolding while BitMart carries out a pre-announced shutdown. As earlier coverage noted, BitMart said on July 26 it would wind down the exchange due to market and operational pressures, including BMX token volatility and user reports of withdrawal delays.

Under the company’s stated plan, BitMart ended new deposits and halted registrations as part of the wind-down. Trading on the platform is scheduled to end on Aug. 26, and the exchange’s operations are set to cease on Jan. 31. BitMart also warned that some withdrawals could undergo additional compliance and security reviews.

That backdrop matters because it suggests the dispute is not simply about whether an exchange will pay, but about the practical mechanics and timing of withdrawals and asset handling during the shutdown window.

Sheldon Xia denies wrongdoing and promises legal action

Sheldon Xia responded to the accusations in an X post on Monday, calling the claims “fabricated rumors” and saying he had preserved evidence. In a machine translation of his remarks, Xia said that during daytime U.S. time he would file a police report and send a lawyer’s letter to X, seeking technical and data forensics related to the post.

Xia further argued that employees were not being prioritized over customers, stating that “everyone is a client” and that there were no special privileges. He also previously denied that BitMart had misappropriated user assets.

In earlier communications, Xia told users not to rely on unverified claims or screenshots purportedly provided by current or former employees, reinforcing his position that the public allegations should be treated skeptically until substantiated.

Arkham wallet tracking shows sharp reductions—but interpretation remains unclear

Wallet movements are also central to what investors and users want to understand during a wind-down. According to Arkham’s on-chain entity tracking, wallets attributed to BitMart held about $36.5 million in crypto assets as of Monday.

Arkham’s data indicates a steep decline from roughly $71 million on July 26 and about $102 million on July 6. Those figures, however, come with important caveats. The tracked wallets may not represent the full set of assets controlled by BitMart, and it remains unclear how much of the reduction reflects customer withdrawals, internal consolidation, or transfers to other addresses.

In disputes like this, a key question is whether reductions in publicly tracked wallet balances reflect legitimate outflows to customers or whether they could suggest asset movement that is not fully explained. Until BitMart or Xia provides the kind of verifiable disclosure demanded by the X account—wallet list, liabilities, reserves, and a repayment framework—readers may be left comparing incomplete public signals.

What to watch next as the deadline approaches

With the promised Wednesday deadline now in focus, market participants will likely look for whether Xia provides a verifiable asset and liability disclosure and whether any repayment plan is detailed in a way that users can test against withdrawal status. Just as importantly, observers should watch how regulators and law enforcement respond to both sides’ public claims, and whether on-chain wallet tracking aligns with the explanations given for balance changes since BitMart began winding down.