BitMart Chinese Account Demands Answers Over Frozen User Funds and Unpaid Salaries
BitMart’s Chinese-language account says it represents users affected by frozen user funds and demands answers from founders Sheldon Lee and Yi Li. In a post dated Aug 17, the account gave a deadline of Aug 19 for a public response, calling for verifiable disclosures of wallets, assets, liabilities, and usable reserves.
It claims many users still cannot withdraw, while some employees have not received final salaries or compensation. The statement asks who restricted withdrawals, when the decision was made, and whether BitMart continued accepting deposits or enabling trading after withdrawal issues emerged. It also requests an investigation into affiliate accounts and related arrangements, and cites alleged accounts linked to Yi Li that purportedly executed batch withdrawals—while stressing the claims are unproven.
Sheldon Lee replied that the accusations were “fabricated rumors” and said BitMart has evidence and will file a police report and a lawyer’s letter seeking technical and data forensics. Later, Lee said the Chinese account was hacked.
The dispute arrives before BitMart’s shutdown: trading services end Aug 26, and a full shutdown is planned for Jan 31, 2027. Similar exchange closures during a weak market period have raised broader concerns about liquidity, customer access to funds, and operational transparency.
Keyword focus: frozen user funds and frozen user funds appear at the center of the conflict, with a compensation and repayment-plan demand tied to the shutdown timeline.
Bearish
This is bearish for risk sentiment because it centers on frozen user funds, withdrawal access, and governance transparency right before scheduled shutdowns. Similar exchange-failure or wind-down episodes (e.g., abrupt pauses in withdrawals followed by disputes over reserves) typically trigger short-term outflows and wider distrust across centralized exchanges.
In the short term, traders may price in higher counterparty risk and reduce exposure to venues perceived as opaque, potentially increasing volatility in liquid coins as capital seeks safer platforms or self-custody. In the long term, the outcome—whether BitMart can credibly demonstrate reserves, complete a transparent repayment plan, and resolve withdrawal restrictions—will determine whether the market views this as an isolated operational dispute or part of a broader liquidity/solvency concern trend for exchanges.