Bitmart founder Sheldon Xia refuted claims that the exchange has vanished with customer funds. He told account holders on X that the team is still working on auditing assets, consolidating them, and performing system maintenance, after which official announcements will follow.
In his post, written in Chinese and published on August 8, Xia first stated that the exchange "has not gone out of control" and "will not go out of control".
He then urged users not to trust the wave of rumors, screenshots, and alleged leaks attributed to current and former employees.
However, Xia did not go into detail, provide any numbers, give any dates, or point to the existence of a proof-of-reserves report. His message came on the same day Bitmart set a withdrawal deadline for US cryptocurrency customers, with many users eagerly awaiting confirmation.
A Shutdown Becoming Increasingly Chaotic
On July 26, Bitmart announced the commencement of a "gradual shutdown of its trading platform," linking this decision to business conditions, market trends, and strategic direction.
According to CoinGecko data, following this news, the company's BMX token plummeted nearly 60% in one day.
On July 26, the company stopped creating new accounts, halted deposits, and disabled new order placement. It also stated that all spot and futures trading would cease on August 26.
All operations on Bitmart will be discontinued by January 31. However, the platform stated that users would retain access to their accounts for some time to view data and submit withdrawal requests.
Rumors About Bitmart Circulated Even Before the Service Closure
In the days leading up to Bitmart's official shutdown announcement, users flooded social media with complaints about being unable to access their tokens on time or at all, as Cryptopolitan reported at the time.
One account holder claimed they still had $80,000 in cryptocurrency locked on the platform. "150,000 people are now looking for their money," this person said, pointing to a Bitmart Telegram channel.
While users were experiencing difficulties with the platform, considerable drama was also unfolding within the company's leadership: CEO Nenter "Nathan" Chou was fired.
Chou told reporters he learned his employment was terminated on July 24. He stated he was not involved in the decision-making process for the shutdown and only learned about it when the information became public.
Chou moved to Bitmart from Animoca Ventures and took the CEO role in April 2025 when Xia stepped down as group president. A few weeks before the company closed, Chou publicly promised that the company "will be here for the next eight" years.
No Regulatory Body to Rely On
Bitmart's holding company, GBM Global Holding Company Limited, is registered in the Cayman Islands, and its user agreement is governed by Cayman Islands law.
However, on August 6, the Cayman Islands Monetary Authority (CIMA) reportedly told journalists that Bitmart and related GBM companies are "not registered, licensed, regulated, or otherwise authorized" to conduct virtual asset business in or from the Cayman Islands.
In December 2021, BitMart suffered a hot wallet hack, losing approximately $150 million.
In a statement published on May 23 in response to earlier complaints about withdrawals, the company blamed its risk management system, stating it had intercepted 239 linked accounts that it claimed were abusing trading subsidies. A full proof-of-reserves report, as promised, has not yet been provided.
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