BitMart founder Sheldon addressed widespread user complaints and reports of unpaid employee wages after the crypto exchange announced its operational wind-down. Sheldon said on social media that he has not disappeared, confirming the core team continues asset reviews, consolidation and system maintenance.
The exchange initiated its shutdown with a July 26 notice outlining an orderly cessation of services. Trading is set to halt at 15:59 UTC on Aug. 26, 2026, with full platform operations ceasing Jan. 31, 2027. BitMart stopped new user registrations and deposits around the July announcement date.
Despite the planned wind-down, many users report significant friction withdrawing their funds. They describe "on-chain withdrawal freeze" messages and emails confirming transactions that do not appear on the blockchain. Even small test withdrawals have remained pending for extended periods.
On-chain data confirms limited outflows. Lookonchain tracked only 58 wallets receiving approximately $805,000 in a 24-hour window after the shutdown announcement—a period that included eight-hour stretches with zero processed withdrawals.
Independent monitors found no large transfers of Bitcoin, stablecoins or altcoins above $25,000 during similar windows. Wallets identified as BitMart's held roughly $69 million in crypto assets by July 27, down from about $102 million earlier in the month. The exchange's native token, BMX, dropped more than 80 percent in a week and was trading near $0.057.
Sheldon denied misappropriating assets, withdrawing funds ahead of users or fleeing the company. He said BitMart is weighing involvement of courts and third-party auditors to produce a transparent report on the situation.
BitMart attributes withdrawal slowdowns primarily to compliance requirements rather than insolvency. The exchange says its withdrawal channel remains open but that requests undergo additional manual review—including identity verification, examination of login devices and IP addresses, assessment of withdrawal address risks, review of fund sources, trading history, Travel Rule compliance and sanctions screening.
Earlier risk-control actions against organized volume-farming schemes had already restricted some balances, though BitMart said legitimate users were unaffected.
Users must complete identity verification, close all open positions before 01:00 UTC on Aug. 26 and file withdrawal requests before 05:00 UTC that same day. BitMart warned that processing times vary by asset, network conditions and verification status.
The Aug. 26 deadline is approaching with a growing queue of withdrawal requests. Submitting a request does not guarantee prompt blockchain settlement, and duplicate filings may compound delays. Users should rely solely on verified support channels; scam risks have risen as third parties offer paid "priority" or "unfreeze" services.
After Jan. 31, 2027, users will retain limited login access to view records and submit withdrawal requests under procedures then in force. Sheldon said the goal remains an orderly wind-down and asked users to await further announcements.
