BitMart Founder Sheldon Xia Denies Asset Misuse Amid Exchange Wind-Down

Highlights:

• Sheldon Xia denied claims of asset misuse and said BitMart’s core team is still handling the shutdown process.
• BitMart will stop trading on August 26 as the exchange moves forward with its planned wind-down.
• Former Global CEO Nenter Chow raised concerns after saying BitMart excluded him from the shutdown decision.

BitMart founder and Group President Sheldon Xia has denied claims that the crypto exchange misused user assets or that its leadership disappeared during the platform’s shutdown process. In an August 8 post on X, Xia said BitMart’s core team remains active and is working on asset checks, consolidation, and system maintenance as the exchange moves toward an orderly wind-down.

Xia addressed growing online rumors about BitMart, including alleged disclosures and screenshots said to have come from current or former employees. He urged users not to treat unverified claims as facts and asked them to rely on official announcements for updates. “We have not disappeared, nor will we,” Xia said. He added that the core team is conducting an inventory and consolidation of assets while also carrying out system maintenance.

Xia also denied allegations that BitMart had misappropriated assets, withdrawn funds early, or taken steps to avoid its responsibilities. According to him, the company is considering involving courts and independent third-party auditors to provide a transparent report. However, Xia did not provide a timeline for an independent audit or disclose new figures about BitMart’s assets or liabilities in the August 8 statement.

1. We have not disappeared, nor will we.
2. There are many rumors, including alleged disclosures and screenshots supposedly provided by former or current employees. Please do not believe unverified claims.
3. Our core team is still conducting an inventory and consolidation of…

— Sheldon (@sheldonbitmart) August 8, 2026

BitMart Shutdown Began on July 26

The latest response comes nearly two weeks after BitMart announced on July 26 that it would begin an orderly wind-down of its cryptocurrency trading platform. The exchange said the decision followed an evaluation of its operating conditions, market environment, and future strategic direction.

BitMart stopped accepting new user registrations and began suspending crypto and fiat deposits on July 26. New spot orders were also stopped, while futures accounts moved into reduce-only mode, meaning traders could reduce existing positions but could not open new ones. Under BitMart’s official shutdown schedule, all spot, futures, and other trading services are expected to end on August 26 at 01:00 UTC. The exchange plans to formally cease trading platform operations on January 31, 2027.

Withdrawals remain available during the wind-down. However, BitMart has advised users to complete identity verification, close their positions, and submit withdrawal requests before 05:00 UTC on August 26. The exchange has also warned that withdrawals may take longer because of higher demand, compliance checks, security reviews, or requests for additional documents.

BitMart Leadership Change Added to Concerns

Questions around the shutdown increased after Nenter Chow, BitMart’s Global CEO, said he was not involved in the decision. Chow said BitMart informed him on July 24 that his employment was being terminated and that his offboarding would begin immediately. He later said he was not consulted about the wind-down and learned about it when the announcement became public.

The shutdown also caused a sharp reaction in BitMart Token (BMX). The token dropped nearly 60% within 24 hours following the closure announcement. Concerns over BitMart withdrawals had also appeared before the shutdown. On May 23, BitMart said some account restrictions resulted from its risk-control system identifying 239 linked accounts allegedly involved in abusive trading activity. At that time, the exchange said its operations were running normally and that it was preparing to publish a Proof of Reserves report.

Xia’s August 8 statement now directly addresses accusations surrounding BitMart’s assets and leadership. However, the proposed independent audit or court-backed transparency report has not yet been given a specific release date.