The wind-down of BitMart has escalated into a public dispute, with current and former staff joining users in demanding answers over frozen withdrawals and unpaid wages. The exchange, which announced in July that it would cease operations by January 31, 2027, now faces a deadline of August 19 for executives Sheldon Lee and Yi Li to disclose reserves and present a concrete repayment plan.
On August 17, an account using the BitMart Chinese-language handle @BitMart_zh publicly criticized management, tagging co-founder Sheldon and the official exchange account. The post claimed that many users are still unable to withdraw funds and that employees have not received their last month’s salary or compensation. The account argued that simply announcing the cessation of operations is not enough when ordinary users still have money locked on the platform.
The public pressure follows remarks by Sheldon on August 8, when he said the company had not ‘run away’ and would not do so. He advised users to be cautious about screenshots and leaks from present and former employees, and stated that the core team remains busy with asset inventory and system maintenance before the next step of an ‘orderly’ shutdown.
Solvency concerns intensified after Whale Alert reported on August 10 that a co-founder of OpenGradient said his market-making team was unable to withdraw funds from BitMart and questioned whether the exchange was solvent. BitMart has maintained that withdrawals are still being processed, and Sheldon has denied any misuse of client funds. The exchange earlier blamed withdrawal problems on a volume-farming scheme involving 239 connected accounts on May 23, and promised to publish proof of reserves ‘at an appropriate time.’ Nearly three months later, that disclosure has not appeared.
The closure timeline is fixed. On July 26, BitMart stopped accepting new deposits, sign-ups, and orders at 01:30 UTC. All futures and spot trading is expected to end on August 26, 2026, at 01:00 UTC. The exchange will officially close operations on January 31, 2027, at 15:59 UTC, after which customers will have limited account access. Users have been asked to complete verification and make withdrawals by 05:00 UTC on August 26, though the company warned that additional compliance checks may apply. The Bitcoin Foundation noted that BitMart has not filed for bankruptcy and has not disclosed how long users will be able to withdraw after operations cease.
Competitors are already using the situation to highlight their own transparency. MEXC announced on August 14 a proof-of-reserves audit by Hacken, reporting a reserve ratio above 100% for all main assets, including 288% for Bitcoin. For traders, the episode reinforces that advertised features and fees matter less than verifiable reserves when trust erodes.
