BitMart Account Demands Answers Over Frozen User Funds and Unpaid Salaries
BitMart’s Chinese-language account has issued a public ultimatum to founders Sheldon Lee and Yi Li, demanding explanations for frozen user funds and outstanding employee salaries. The account has set a deadline of August 19 for a public response.
The statement also calls for verifiable disclosures of assets and a detailed plan for repayment, as scrutiny intensifies over the fate of funds held on the cryptocurrency exchange.
In a post dated August 17, the account highlighted that numerous users are still unable to withdraw their assets, and some employees have yet to receive their final pay or compensation. “This isn’t some business dispute that can be brushed off with a single ‘ceasing operations’ statement,” the post asserted.
The statement specifically requested evidence of BitMart’s current wallet holdings, assets, liabilities, and available reserves. It also urged management to clarify who made the decision to restrict withdrawals, when that decision was enacted, and when executives first became aware of the withdrawal issues.
Furthermore, the account questioned whether BitMart continued to solicit deposits or trading activity after management was aware of the withdrawal problems. It also called for an investigation into affiliated accounts, related companies, trusts, and any other arrangements involving BitMart-related funds. The statement also raised concerns about accounts allegedly linked to Yi Li, which reportedly held tens of millions of dollars and executed batch withdrawals.
However, the account emphasized that these allegations remained unproven and stated that potentially criminal conduct should not be alleged without complete evidence. Nevertheless, it demanded explanations regarding the source and destination of funds if such accounts did exist.
Employee compensation was another key point, with the post arguing that rank-and-file workers had no control over company fund management or the timing of operational cessation. Therefore, it contended, salaries and outstanding compensation should be paid in full.
The August 19 deadline also encompasses a repayment plan that must detail remaining assets, total liabilities, projected user recovery amounts, the order of repayment, commencement and completion dates, oversight mechanisms, and the possibility of independent audits.
Sheldon Lee, in response, characterized the information presented by the Chinese account as “fabricated rumors.” He stated that BitMart had gathered evidence and intended to file a police report during U.S. business hours, in addition to sending a lawyer’s letter to X (formerly Twitter) requesting technical and data forensics.
Blockchain investigator ZachXBT questioned why BitMart would not simply return the funds if it possessed sufficient liquidity, and criticized the lack of transparency surrounding users’ access to their money.
In a subsequent update, however, Lee claimed that the account had been compromised and that the issues raised were not posted by current employees.
This dispute emerges shortly before BitMart’s planned shutdown. A July 26 notice informed users that trading services would cease on August 26, with the exchange’s official closure scheduled for January 31, 2027.
This announcement placed BitMart among other crypto platforms preparing to wind down operations amidst a challenging market, including BitMEX, which informed its customers on July 23 that it would halt operations by September 23. Analysts, such as Ran Neuner, have suggested that these exchange closures are part of a broader market consolidation.
