BitMart account demands founder explain funds status, Xia calls claims ‘fabricated’
BitMart's Chinese-language X account demanded an Aug. 19 repayment plan, while Sheldon Xia called its claims of blocked withdrawals and non-payment of salaries ‘fabricated rumors.’
Intelligence analysis by Llama
BitMart's official Chinese-language X account has publicly demanded that founder Sheldon Xia explain the whereabouts of user funds and produce a repayment plan by Wednesday. Xia called the claims ‘fabricated rumors’ and said evidence had been preserved.
BitMart is a cryptocurrency exchange that's shutting down. Some users can't withdraw their money, and some employees haven't gotten paid. The company's founder, Sheldon Xia, is being asked to explain what's going on and to give users their money back. Xia says the claims are fake and that he's already collected evidence to prove it.
Analysis
BitMart's Demands and Xia's Response
BitMart's official Chinese-language X account has publicly demanded that founder Sheldon Xia explain the whereabouts of user funds and produce a repayment plan by Wednesday. The account said in a Monday post that some users remained unable to withdraw funds and that some employees had not received their final salary or compensation, while calling on Xia to disclose BitMart's wallets, assets, liabilities and available reserves, according to a machine translation of the post.
The post said if Xia does not provide a verifiable asset disclosure and repayment plan by the deadline, it would continue to submit evidence to regulators, law enforcement, lawyers and the media. It was unclear who authored Monday's post or whether the account remained under the company's control. Cointelegraph contacted BitMart for comment but did not immediately receive a response.
Claims on Official Account Called ‘Fabricated’
Xia responded in an X post on Monday, calling the claims in the post ‘fabricated rumors’ and saying evidence had been preserved, according to a machine translation. ‘We have collected full evidence of the content on X, all of which is fabricated rumors. During daytime US time, we will file a police report and send a lawyer’s letter to X, demanding technical and data forensics,’ Xia said.
Xia also said employees were not being prioritized over customers in the handling of assets, adding that ‘everyone is a client’ and there were no privileges. He previously denied that BitMart had misappropriated user assets. On Aug. 8, Xia told users not to believe unverified claims or screenshots purportedly provided by current or former employees.
Wallets Attributed to BitMart
Wallets attributed to BitMart by Arkham held about $36.5 million in crypto assets as of Monday, down from roughly $71 million on July 26 and $102 million on July 6. The tracked wallets may not represent all assets controlled by BitMart, and it is unclear how much of the decline reflects customer withdrawals, asset consolidation or transfers to other wallets.
Key points
- BitMart's Chinese-language X account demanded a repayment plan by Wednesday.
- Sheldon Xia called the claims ‘fabricated rumors’ and said evidence had been preserved.
- Wallets attributed to BitMart held about $36.5 million in crypto assets as of Monday.
If BitMart can provide a clear repayment plan and disclose its assets, it may be able to recover and continue operating. This would be a positive outcome for users and employees who have been affected by the shutdown.
If BitMart is unable to provide a clear repayment plan and disclose its assets, it may face further regulatory action and potential lawsuits. This could lead to a complete collapse of the company and a loss of user funds.
