BitMart founder Sheldon Xia denies fleeing funds amid exchange wind-down

BitMart founder Sheldon Xia has denied allegations that the cryptocurrency exchange has absconded with user funds following the platform's announcement to undergo an "orderly wind-down of its trading platform operations." After a period of silence following the July 26 announcement, Xia stated on August 8 that the core team is currently engaged in "asset inventory, asset consolidation and system maintenance" to ensure an orderly liquidation. He urged users to disregard rumors and alleged leaks from current or former employees.

The shutdown process began on July 26, when BitMart halted new registrations, deposits, and new orders. The platform is scheduled to cease all spot and futures trading by August 26, with a final cessation of all operations expected by January 31, 2027. While the company maintains that withdrawal services will continue, users have reported significant difficulties accessing funds, with some claiming large sums remain trapped.

The transition has been marked by leadership changes, including the departure of global CEO Nathan Chow, who stated he was not involved in the decision to wind down operations. Amidst the instability, the platform's BMX token experienced a significant price drop.