Sheldon Lee, founder of BitMart, rejected calls to explain why, according to a message posted on X, some customers of the exchange cannot withdraw their funds and some employees were not paid their July salaries. The message, posted on the exchange's Chinese account which Lee said had been hacked, asked him and his business partner Yi Li to open the books, including wallets, assets, liabilities and available reserves, for independent verification.
The deadline given was until 19 August to respond. Last month, BitMart announced it was closing operations and that 26 August would be the last day of trading. Many users report that withdrawals remain blocked.
"Until today, a lot of users still cannot withdraw their own money, and a lot of employees have not even received their salary from last month or the compensation they are owed. This is not a simple business dispute that can be ignored with a single statement of 'closing operations'", the message said. "Are you willing to accept independent third-party audits?"
In his response, Lee did not address the demands directly, instead referring to the alleged hack. "We have collected complete evidence of the content on X, all of which are fabricated rumours," said Lee. "During US daytime hours, we will file a report with the police and send a lawyer's letter to X, demanding technical and forensic data expertise".
Regarding unpaid staff, the founder of the Cayman Islands-based cryptocurrency exchange claimed that employees' assets "are not prioritised over customers' assets, everyone is a customer, and there are no privileges".
A user on X known as BeardStaff said their assets have been inaccessible since the 26 July announcement, and that a dedicated VIP manager deleted them from Telegram the day withdrawals stalled. "Where is my $10 million?", they posted.
Another user was direct about Lee's claim of the account being hacked. "Nobody asked you whether your account was hacked or not," wrote @chicha_liam. "Answer what people have been asking you since 26 July. When will users be able to withdraw funds?"
Blockchain researcher ZachXBT also rejected the explanation. "If you really have liquidity, just return the funds to everyone instead of posting vague statements".
Roshan Dharia, chief executive of distressed investment firm Echo Base, told CoinDesk via Telegram that his firm has offered BitMart a funded financial restructuring package that includes insolvency financing and equity participation on emergence, backed by Echo Base as a creditor. He said BitMart has not responded.
"A custody book of this size cannot be resolved consensually, because you cannot reliably reach such a dispersed retail customer base, and every user you do not reach maintains a full claim," said Dharia. "There is no version of this that ends well without going to court. The only question for the board is whether BitMart enters with a plan and a funded sponsor, or is taken there by its own creditors".
If no verifiable response is received before the deadline, the anonymous author of the X message said they would submit all available data, financing leads and evidence to police authorities, regulators, lawyers and media outlets worldwide.