The cryptocurrency exchange BitMart is confronting escalating demands for accountability following its announcement to cease operations. An open statement shared on social media platform X has given CEO Sheldon Lee until Aug. 19 to address calls for complete financial disclosure.
BREAKING: BitMart founder denies an explosive letter attacking management, claiming hackers posted it through the company’s Chinese X account.
An open letter, apparently posted by employees, demanded answers from Sheldon Xia and Yi Li by August 19 about:
– Where users’ money… https://t.co/kOYdVVG6fj pic.twitter.com/ARuLs9yKaT
— Coin Bureau (@coinbureau) August 17, 2026
The public communication, published through BitMart’s Mandarin-language X profile, urged Lee and co-founder Yi Li to make public their wallet addresses, asset holdings, outstanding obligations, and accessible reserve funds. The statement further requested acceptance of an external independent audit and publication of a comprehensive repayment schedule.
Lee’s response characterized the account as compromised and dismissed the allegations as “fabricated rumors.” He indicated the platform would pursue a police investigation and submit a formal complaint to X. However, he stopped short of directly engaging with the specific requests outlined.
On July 26, BitMart revealed plans to discontinue accepting new user registrations, incoming deposits, and trading functions. According to the announcement, Aug. 26 would mark the last day for trading, with complete operational cessation scheduled for Jan. 31, 2027.
Following the operational shutdown disclosure, customers have persistently reported blocked access to their holdings. A user identified as BeardStaff stated their funds became unreachable on July 26, and noted that a VIP account manager excluded them from a Telegram communication channel on the same date withdrawals stopped functioning. They assert approximately $10 million remains trapped on the platform.
Blockchain analyst ZachXBT commented on Lee’s response, suggesting that if the exchange possessed sufficient liquidity, it should prioritize returning customer assets instead of releasing ambiguous public statements.
The platform had earlier communicated that withdrawal functionality would continue operating but might require enhanced identity verification procedures. BitMart also cautioned that elevated request volumes could extend processing durations.
Employee compensation issues are also highlighted in the community demands. The open statement indicated certain team members have not received July paychecks or termination-related payments following the shutdown announcement. Lee maintained that employee holdings receive identical treatment to customer assets, asserting all parties are classified as clients without preferential treatment.
Roshan Dharia, who heads distressed asset firm Echo Base, informed CoinDesk that his organization presented BitMart with a financed restructuring proposal, including debtor-in-possession capital. He reported the exchange has not acknowledged the offer.
Dharia emphasized that resolution without judicial oversight appears unlikely given the customer base scale. “There is no version of this that ends well without going to court,” he stated.
The public letter additionally requested Yi Li provide clarification regarding fund origins in accounts purportedly associated with her, which the statement suggested may contain tens of millions in value. The authors emphasized this was not an accusation of misconduct and requested public explanation.
Should no credible response arrive by the Aug. 19 cutoff, the statement’s authors indicated they would forward documentation to law enforcement agencies, financial regulators, legal counsel, and media organizations across various jurisdictions.
BitMart was previously targeted in a December 2021 security breach resulting in $196 million in losses, following which the platform pledged to reimburse impacted users.
The post BitMart Exchange Faces Ultimatum: Users Set August 19 Deadline for Transparency appeared first on Blockonomi.
