BitMart crypto exchange, which recently shut down its services, is facing a serious allegation of asset mismanagement. Some people claiming to be employees took control of its Chinese X account and accused founder Sheldon Xia and partner Yi Li of failing to explain frozen user funds and unpaid salaries.
However, employees have asked five key questions that need to be answered by 19 August.
BitMart Employees Demand Answers by 19 August
In an X post shared through the BitMart account, the alleged employees demanded that Sheldon and Li explain where user funds are being held and why some customers are still unable to withdraw their money to this day.
“One, where exactly did BitMart users’ money go?
They asked the company to publish details of its assets, liabilities, wallets and usable reserves. The group said users should receive proof that BitMart has enough assets to cover their balances.
“Two, why can’t a huge number of users still withdraw normally to this day?”
The employees also questioned when BitMart management first knew there were problems with withdrawals and who made the decision to restrict them.
“Three, all funds related to BitMart user assets must be thoroughly investigated.”
There are already tons of reports and leads circulating about affiliated accounts, related companies, trusts, and other fund arrangements. The employees said these should be checked fully before anyone is blamed.
“Four, pay the employees their due salaries and compensation in full.”
Another major demand involves employee pay. The group said some workers have not received their final salary or compensation. They argued that regular employees should not have to bear the cost of decisions made by company management.
“Five, by August 19th, put forward a truly executable user repayment plan.”
The group gave Sheldon and Li until 19 August to answer the questions and provide a clear repayment plan.
Sheldon Rejects the Claims
Quickly responding to the employees demand, BitMart founder Sheldon said that the posts were based on fabricated rumors. He said the company had collected evidence of the claims and planned to file a police report and send a lawyer’s letter to X for technical and data checks.
Sheldon also said customer assets would remain the priority and that employees would not receive special treatment over customers.
Blockchain investigator ZachXBT then questioned the response, saying that,
“If you actually have the liquidity, then simply return the funds to everyone instead of posting vague statements?”
Some BitMart users have also asked ZachXBT to investigate, saying they are still facing problems accessing or withdrawing their funds.
BitMart’s Shutdown Adds Pressure
The dispute comes as BitMart prepares to close its trading platform. The exchange stopped new registrations, deposits, and new orders on July 26. Trading is scheduled to end on 26 August, while the platform plans to fully stop operations on 31 January 2027.
BitMart says withdrawals will remain available, but it has warned that some requests may face extra identity, source-of-funds, sanctions, and security checks.
by January 31, 2027. Meanwhilem Withdrawals remain open through January 31, 2027, though users report processing delays and increased compliance/security checks.
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