Crypto exchange BitMart is set to halt all operations on August 26, but its users’ funds remain trapped inside. The shutdown decision, announced in July 2026, has turned into a serious issue as many users report that their withdrawal access remains blocked to this day.
An X user named “BeardStaff” reported that their assets worth $10 million could not be withdrawn since the closure announcement on July 26. As the withdrawal process began to stall, BitMart’s VIP manager deleted their contact from the Telegram group, cutting off the only priority communication channel they had.
Account Hack Drama and Demands to Open the Books
The situation escalated when BitMart’s official Chinese-language X account suddenly posted demanding statements from the inside. The post urged BitMart founder Sheldon Lee and his partner Yi Li to open all of the company’s books. The demand requested details of wallets, assets, liabilities, and fund reserves that could be verified by an independent party, with a response deadline of August 19.
Sheldon Lee responded with a denial. He claimed the company’s X account had been hacked, calling the contents of the post “fabricated rumors.” Lee emphasized his plan to report the incident to the police and send an official power of attorney to X.
However, the denial did not address the core issue. Lee avoided crucial questions regarding the stalled withdrawals. When pressed about BitMart employees who reportedly had not received their July salaries, Lee only responded briefly that “no priority rights stand above client assets.”
Investigators and Investors Lose Patience
This vague pattern of communication drew a reaction from on-chain investigator ZachXBT. He issued a direct warning to the exchange: “If you have liquidity, return funds, don’t post vague statements.”
Institutional players also responded. Echo Base CEO, Roshan Dharia, offered assistance in the form of a capitalized restructuring package, or debtor-in-possession financing, to help the exchange, which is incorporated in the Cayman Islands. This settlement offer received no response from BitMart management.
Observing this defensive stance, Dharia believes BitMart is heading toward a legal dispute. “There is no version of this settlement that ends well without a court,” he asserted.
Collapse Amid Market Slump
The crisis surrounding BitMart comes just as centralized exchanges (CEX) are experiencing a sluggish phase. Throughout July, the combined total trading volume of CEXs plunged 23.9% to $3.76 trillion - the lowest volume record since November 2023.
The August 19 deadline for opening the books is just days away. For users whose money is locked up, the debate over whether the official X account was hacked is irrelevant. They simply need withdrawal access to be reopened before BitMart completely shuts down on August 26. As reported by CoinDesk.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
