BitMart is confronting mounting claims of insolvency after a co-founder of OpenGradient, Matthew Wang, asserted that his market-making team’s funds are locked on the exchange and cannot be withdrawn. The allegation compounds existing withdrawal complaints as BitMart proceeds with a phased shutdown of its global platform.
Wang took to social media to accuse BitMart of still encouraging token holders to lock assets on the exchange roughly one week before abruptly halting related services. He called the timing “shocking” and suggested the lockup campaign may have been a deliberate attempt to attract additional liquidity. BitMart has not issued a direct response to Wang’s statements, and the claims have not been independently verified.
The exchange began winding down operations on July 26, 2026, when it halted new registrations, crypto and fiat deposits, and new spot orders. Futures accounts switched to reduce-only mode, and all trading services are slated to end at 01:00 UTC on August 26, 2026. BitMart intends to fully terminate its trading-platform operations by January 31, 2027. While the company insists that withdrawals remain available, users report significant delays. Scandic Coin (SNC), for instance, disclosed that withdrawal requests involving approximately 21,898 USDT, 926,635 SNC, and another 256 USDT submitted on July 26 have remained unprocessed.
BitMart founder Sheldon Xia attempted to allay concerns on August 8, stating that the exchange has “not run away” and “will not run away.” He explained that the core team is conducting an asset inventory and consolidating assets, but he provided no concrete data on reserves, a withdrawal-processing timeline, or a repayment schedule. BitMart had announced in May that it was preparing a proof-of-reserves report in response to earlier withdrawal complaints, yet that report remains unpublished. Without verifiable asset and liability disclosures, Wang’s insolvency allegation remains unproven, but the pattern of frozen funds has intensified scrutiny.
US-based users face additional pressure: they were instructed to close positions, redeem assets, and withdraw all remaining crypto by August 8 at 23:59 UTC, with the warning that further compliance reviews and restrictions could follow. The unfolding situation echoes recent liquidity troubles at AscendEX, where delayed withdrawals preceded an exchange shutdown. For now, traders and token holders await concrete evidence from BitMart that it can meet its obligations.
