BitMart founder dismisses calls for audit as users report blocked funds, unpaid employees

BitMart founder Sheldon Lee dismissed calls to explain why, according to a post on X, some customers of the exchange are unable to withdraw their funds and some employees were not paid their July salaries.

The post on the exchange’s Chinese-language account, which Lee said had been hacked, called on him and business partner Yi Li to open the books, including wallets, assets, liabilities, and usable reserves, to independent verification. It gave Lee until Aug. 19 to respond.

Last month, BitMart said it was winding down operations and Aug. 26 would be the final trading day. Many users are reporting withdrawals remain blocked.

“To this day, a bunch of users still can’t withdraw their own money, and a bunch of employees haven’t even received their last month’s salary or the compensation they’re owed. This isn’t some business dispute that can just be brushed off with a single ‘ceasing operations’ statement,” the post said.

“Are you willing to accept independent third-party audits?”

In his response, Lee did not address the demands directly, referring instead to the alleged hacking.

“We have collected full evidence of the content on X, all of which is fabricated rumors,” Lee said. “During daytime US time, we will file a police report and send a lawyer’s letter to X, demanding technical and data forensics.”

Regarding unpaid staff, the founder of the Cayman Islands-based crypto exchange said, employee assets “are not prioritized over client assets, everyone is a client, and there are no privileges.”

An X user known as BeardStaff said their assets had been inaccessible since the July 26 announcement, and that a dedicated VIP manager removed them from Telegram the day withdrawals stalled. “Where is my $10 million?” they posted.

Another user cut straight to Lee’s hacked account claim.

“No one asked you if the account was hacked or not,” wrote @chicha_liam. “Answer what people have been asking you since July 26. When will users be able to withdraw their funds?”

Onchain investigator ZachXBT also pushed back. “If you actually have the liquidity, then simply return the funds to everyone instead of posting vague statements.”

Roshan Dharia, CEO of distressed investment firm Echo Base, told CoinDesk via Telegram that his firm has offered BitMart a funded restructuring package including debtor-in-possession financing and equity at emergence, underwritten by Echo Base as a claimholder. He said BitMart has not responded.

“A custodial book this size can’t be resolved consensually, because you can’t reliably reach such a dispersed retail customer base, and every user you miss keeps a claim in full,” Dharia said. “There is no version of this that ends well without going to court. The only question for the board is whether BitMart walks in with a plan and a funded sponsor, or is taken there by its own claimants.”

If no verifiable response is received by the deadline, the unidentified poster on X said they would submit all available data, fund leads, and evidence to law enforcement, regulators, lawyers, and the media worldwide.