BitMart faces insolvency claims as withdrawal frustrations mount

Matthew, who co-founded OpenGradient, asserted that his market-making team’s assets remain trapped on the platform. He criticized the exchange for soliciting token lockups just one week before halting core services, characterizing the move as a desperate bid to secure liquidity. While the exchange maintains that withdrawals are still operational, users report significant friction, including mandatory identity checks and source-of-funds reviews that have delayed payouts.

BitMart founder Sheldon Xia rejected claims of fund misappropriation on August 8, insisting the team is actively consolidating assets and maintaining systems. Despite these assurances, the exchange has yet to release a proof-of-reserves report originally promised in May. This lack of transparency has left the community without verifiable data regarding the platform’s liabilities or its actual ability to cover outstanding balances.

Other projects are reporting similar issues; Scandic Coin noted that thousands of dollars in assets remain unprocessed after requests submitted in late July. With BitMart’s global trading services scheduled to terminate on August 26, the window for users to secure their funds is rapidly closing. The exchange has warned that requests made after this date will be subject to a secondary, currently undefined process, leaving many to wonder if the firm can fulfill its obligations before it fully shutters operations in early 2027.