Internal conflict within the BitMart crypto exchange has spilled over into the public eye. The exchange’s official Mandarin-language X account has turned around to make an announcement directly targeting its top executive. The account openly demanded that the company’s founder, Sheldon Xia, provide a transparent explanation regarding the whereabouts of user funds. Furthermore, Xia was urged to submit a detailed debt repayment plan with a deadline of no later than Wednesday, August 19, 2026.
This public move was triggered by unresolved liquidity issues. To this day, some users are still complaining about their locked accounts due to failed withdrawals. The crisis has spread to the company’s operational workforce. Several BitMart employees are reportedly left in limbo because they have not received their salaries or their final compensation payouts, even though the exchange’s closure process is underway.
Ultimatum to Disclose Reserve Data
The demands made via social media target the company’s financial data. The managers of the official account requested that Xia immediately disclose the details of BitMart’s digital wallet addresses. They demand the disclosure of the asset and liability list, as well as independently verifiable proof of customer reserves.
The message concluded with a stern warning to the founder. If Xia fails to meet the Wednesday deadline, the parties behind the account threatened that they will not stand idle. They stated they are prepared to continue handing over internal evidence to third parties. The list of recipients for this evidence includes market regulators, law enforcement agencies, lawyers representing victims, and the mass media. However, amid this dispute, one detail remains unclear: it is not known for certain which individual or group currently manages the X account, and whether control still legitimately rests in the hands of the company’s official structure.
Countdown to Operational Shutdown
This internal turmoil adds to the burden on BitMart, which has already entered its final operational phase. The platform’s management had previously announced plans to close the exchange on July 26, 2026. The decision to halt services was taken shortly after the price of their native token, BMX, plummeted drastically, followed by a wave of customer complaints regarding asset withdrawal delays.
Based on the established transition schedule, all forms of trading activity on the BitMart platform will be permanently halted on August 26, 2026. Meanwhile, the full operations of the exchange will be completely shut down on January 31, 2027. The remaining time leading up to the end of August has turned into an arena of mutual demands among the company’s internal parties. The fate of the customers’ remaining funds and the employees’ financial rights now entirely hinges on the founder’s response before the August 19 ultimatum deadline passes.
Reported from Cointelegraph.
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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.
