An open letter posted on Monday by BitMart’s Chinese-language X account called on founder Sheldon Xia and co-founder Wei “Terence” Li to publicly disclose the exchange’s wallets, assets, liabilities and available reserves, along with a workable repayment plan, by August 19. The post stated that some users remain unable to withdraw funds and that certain employees have not received final salaries or compensation.

The account warned that failure to provide verifiable disclosure and a concrete plan would lead to submission of evidence to regulators, law enforcement, lawyers and media worldwide. It remains unclear who controls the account or whether it still operates under official company direction.

Xia Rejects Claims as Fabricated

Sheldon Xia responded the same day, describing the letter’s contents as fabricated rumors. He said the company had preserved evidence and would file a police report while sending a legal demand to the platform for technical and data forensics. Xia also stated that employees were not being prioritized over customers in the handling of assets, adding that everyone is treated as a client with no privileges.

On August 8, Xia had already denied that he or other executives withdrew funds ahead of users. He said the company was reviewing and consolidating its assets and considering a third-party audit, though no specific figures or timelines were provided at that time.

Wind-Down Timeline and User Concerns

BitMart announced on July 26 that it would cease operations in an orderly manner, citing operating conditions, the market environment and future strategic direction. New deposits and registrations were halted immediately. Spot and futures trading is scheduled to end on August 26, with full platform shutdown set for January 31, 2027.

The exchange’s native token, BMX, fell roughly 58 percent in the 24 hours following the announcement. Nathan Chow was terminated as global chief executive on July 24, two days before the public notice. Chow has said he learned of the shutdown only after it became public and had no role in the decision.

Users have reported withdrawal requests remaining pending or showing as completed without corresponding on-chain transaction hashes. Early data indicated limited activity, with roughly 58 wallets withdrawing a combined $805,000 in the first day after the announcement, including an eight-hour stretch with no withdrawals processed.

Wei Li resigned as chief product officer on August 13, stating he was not responsible for the exchange’s core business and had no authority over platform assets, accounts or matters relating to user funds. The letter refers to him in connection with alleged related accounts that held tens of millions of dollars with records of large withdrawals, though it notes these claims require further verification and have not been published as proven. Li has not publicly addressed that specific point.

Asset Visibility and Historical Context

Wallets attributed to BitMart held approximately $36.5 million in crypto assets as of Monday, according to tracking data, down from about $71 million on July 26 and $102 million on July 6. These figures may not capture all assets under the exchange’s control, and the decline could stem from customer withdrawals, consolidation or transfers to other addresses.

BitMart’s own transparency materials indicate that a full audit will follow at an appropriate time. So far the exchange has released only a partial list of wallet addresses covering a portion of its holdings.

The current situation follows earlier challenges for the platform. In December 2021, a hack involving a stolen private key resulted in the loss of about $196 million from hot wallets. The Federal Trade Commission later opened an investigation into the exchange. Separate complaints and lawsuits have also been filed in prior years alleging misappropriation of customer tokens.

The August 19 deadline now places direct pressure on the founders to produce verifiable details on reserves and a repayment framework before trading services conclude later this month.