BitMart founder dismisses calls for audit as users report blocked funds, unpaid employees
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
BitMart founder Sheldon Lee has dismissed allegations that the exchange is blocking user withdrawals and has unpaid employees, calling them “fabricated rumors” and blaming a hack of BitMart’s Chinese-language X account. The claims stated users cannot withdraw funds and some July salaries remain unpaid. Users, onchain investigator ZachXBT, and distressed investment firm Echo Base have demanded either withdrawals be restored or an independent audit, as BitMart prepares to cease operations on August 26. Echo Base said it proposed a funded restructuring plan but received no response from BitMart.
Why it matters
The source highlights that the ongoing withdrawal issues and alleged unpaid salaries pose significant risks to users and employees of BitMart. Echo Base’s statement that resolution is unlikely without a court process underscores potential legal and financial fallout. The dispute over the exchange's liquidity and transparency affects customer trust and regulatory scrutiny in the broader crypto industry.
Key context
Last month, BitMart announced it would wind down operations, setting August 26 as the final trading day. Since that announcement, many users report they cannot access their funds. Allegations surfaced on BitMart’s Chinese-language X account, which the founder claims was hacked, demanding transparency through an independent audit. Echo Base, a distressed investment firm, has offered financial restructuring support, but BitMart has not engaged.
Key numbers and entities
Key individuals include BitMart founder Sheldon Lee and business partner Yi Li. Onchain investigator ZachXBT and Echo Base CEO Roshan Dharia are notable critics. A user named BeardStaff claimed $10 million remains inaccessible. BitMart’s final trading day is August 26, and a deadline for response was set for August 19 in the controversial X post.
What remains unclear
The source does not specify whether BitMart has responded to the restructuring proposal beyond Lee’s statements dismissing the hacking allegations. It remains unclear if users will regain access to their funds or if an independent audit will occur. The extent of the alleged hacking and its impact on communications is also not independently verified.