BitMart founder Sheldon Xia has publicly rejected claims that the cryptocurrency exchange absconded with customer assets, stating that its core team continues work on asset inventory, consolidation and system maintenance. The denial came on August 8 as US-based users faced a final deadline to withdraw funds and reports of delayed payouts circulated among account holders.

Xia posted in Chinese on the social platform X that the exchange “has not run away” and “will not run away.” He urged users to disregard rumors, screenshots and alleged leaks attributed to current or former staff, directing them instead toward official channels. The statement provided no specific figures on remaining assets, timelines for full payouts or a detailed reserve report.

Shutdown Timeline and Token Reaction

BitMart announced on July 26 that it would begin an orderly wind-down of trading platform operations after evaluating operating conditions, the market environment and strategic direction. New account registrations, deposits and fresh orders ceased that day. All spot and futures trading is scheduled to end on August 26, with full platform operations set to conclude by January 31, 2027. Limited login access is expected to remain available afterward for record review and withdrawal requests.

The native BMX token fell nearly 60 percent in the day following the announcement, according to market data. The sharp decline extended a longer period of weakness for the token, which had already lost substantial value over the prior year. Utility tied to trading fee discounts, listing votes and other platform features is set to disappear with the exchange’s closure.

Withdrawal Activity and User Concerns

Users had reported difficulties accessing funds even before the official shutdown notice. Some described frozen or significantly delayed withdrawals, with complaints particularly visible in Chinese- and Vietnamese-language discussion channels. One account holder claimed roughly $80,000 remained trapped and referenced a Telegram group of about 150,000 people seeking funds.

Recent on-chain activity shows an acceleration in processing. Ethereum withdrawals, previously limited, rose above 200 transactions per hour beginning August 7 and at times approached 400 per hour, with averages near 300. Exchange-linked holdings had earlier declined from approximately $102 million to the $69–71 million range, though internal transfers complicate exact interpretation of the figures.

US customers faced an August 8 deadline at 23:59 UTC. The exchange has indicated that late requests will enter a separate handling process involving additional identity, source-of-funds and security reviews. Sustained high withdrawal throughput would support claims that customer assets remain available, while any renewed slowdown could renew liquidity questions. Total outstanding liabilities have not been disclosed.

Leadership Changes and Regulatory Status

Global CEO Nenter “Nathan” Chow was informed on July 24 that his employment was ending, with offboarding beginning immediately. Chow stated he played no role in the wind-down decision and learned of the announcement only when it became public. He had joined the company from Animoca Ventures and assumed the CEO role in April 2025 after Xia moved to group president. Weeks earlier, Chow had publicly indicated the exchange would remain operational for the next eight years.

BitMart’s holding company, GBM Global Holding Company Limited, is registered in the Cayman Islands, and its user agreement references Cayman law. On August 6 the Cayman Islands Monetary Authority confirmed that BitMart and related GBM entities were never registered, licensed, regulated or authorized to conduct virtual-asset business in or from the territory.

The exchange previously experienced a major hot-wallet incident in December 2021 that resulted in losses estimated between $150 million and $196 million. In a May statement addressing earlier withdrawal complaints, BitMart attributed delays to its risk system intercepting accounts linked to alleged trading-subsidy abuse. A comprehensive proof-of-reserves report has not been released.

Outstanding Obligations

Customer withdrawals represent only one category of claims on remaining resources. Reports of unpaid wages introduce competing demands from employees. Without disclosed total liabilities or independent third-party reconciliation, the precise coverage of assets against all obligations remains unclear. An orderly wind-down will require sufficient resources to settle customers, staff and other creditors.

Xia has referenced the possibility of court involvement and independent auditors. Verified asset disclosures and continued progress on withdrawal processing would provide clearer evidence that funds remain accounted for as the platform moves toward final closure.