BitMart founder Sheldon Xia says the exchange’s own Chinese-language X account was hacked. The account had alleged that users cannot withdraw funds and that some employees have gone unpaid. Xia called the claims “fabricated rumors.” (CoinDesk)
The post demanded that Xia and business partner Yi Li disclose wallets, assets, liabilities, and usable reserves for third-party verification. It set an Aug. 19 deadline. If no response came, it threatened to submit evidence to regulators, law enforcement, lawyers, and media worldwide.
Cointelegraph’s Asia Express roundup characterized the situation as BitMart’s “internal feud” erupting into public view “ahead of its closure.” Neither source, however, confirms an official closure announcement beyond the wind-down plan BitMart disclosed in July. (Cointelegraph)
BitMart is based in the Cayman Islands. The exchange said in July 2026 it was winding down operations. Aug. 26 is the final trading day, per CoinDesk. The July 26 wind-down announcement coincided with a 58% crash in the exchange’s BMX token.
Withdrawals remain blocked for many users, CoinDesk reports. One X user, BeardStaff, said assets had been inaccessible since the July 26 announcement and claimed a VIP manager removed them from Telegram the same day withdrawals stalled. “Where is my $10 million?” the user wrote.
Another user, @chicha_liam, responded to Xia’s hack claim: “No one asked you if the account was hacked or not. Answer what people have been asking you since July 26. When will users be able to withdraw their funds?”
The X post said some employees had not received their July salaries or owed compensation. “This isn’t some business dispute that can just be brushed off with a single ‘ceasing operations’ statement,” it read.
Xia pushed back in a message reported by CoinDesk. “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.” He added that employees “are not prioritized over client assets, everyone is a client, and there are no privileges.”
On-chain investigator ZachXBT was not convinced. “If you actually have the liquidity, then simply return the funds to everyone instead of posting vague statements,” he wrote.
Whether the Chinese-language account was genuinely compromised remains unconfirmed. Xia asserts it was hacked. The account’s own posture is that it represents BitMart staff making legitimate demands. No independent verification of either claim has surfaced.
Echo Base, a distressed investment firm, has proposed a funded restructuring package for BitMart. The proposal includes debtor-in-possession financing and equity at emergence, underwritten by Echo Base as a claimholder. BitMart has not responded.
Roshan Dharia, CEO of Echo Base, told CoinDesk via Telegram that the situation is unlikely to be resolved without a court process. “A custodial book this size can’t be resolved consensually, because you can’t reliably reach such a dispersed retail customer base, and every user you miss keeps a claim in full,” Dharia said. “There is no version of this that ends well without going to court. The only question for the board is whether BitMart walks in with a plan and a funded sponsor, or is taken there by its own claimants.”
The exact number of affected users and the total value of blocked funds remain unknown. No source has provided a dollar figure for frozen balances beyond BeardStaff’s individual $10 million claim. The number of unpaid employees is also unclear.
Traders, as ever, disagree on what happens next.
