BitMart Founder Rejects Audit Amid Blocked Withdrawals and Unpaid Salaries

Woofun AI reports that BitMart founder Sheldon Lee has categorically rejected demands for independent financial audits, attributing the controversy to a compromised social media account rather than addressing the core allegations of blocked user withdrawals and unpaid employee salaries. The conflict centers on a post published on the exchange's Chinese-language X account, which Lee claims was hacked, urging him and business partner Yi Li to submit their books to third-party verification. This denial has intensified tensions as the platform approaches its scheduled operational shutdown, with stakeholders demanding immediate clarity on the status of locked capital and outstanding compensation obligations.

The specific allegations outlined in the viral post require a comprehensive disclosure of wallets, assets, liabilities, and usable reserves to independent verification agents, with a strict deadline set for Aug. 19 for Lee to respond. The post explicitly criticized the exchange's previous announcement that operations would wind down by Aug. 26, the final trading day, arguing that the situation transcends a simple business dispute. "To this day, a bunch of users still can't withdraw their own money, and a bunch of employees haven't even received their last month's salary or the compensation they're owed," the post stated, challenging the notion that a "ceasing operations" statement could resolve the matter.

The deeper driver is the lack of transparency regarding the exchange's solvency, with the poster questioning whether Lee and Li are willing to accept independent third-party audits to prove the safety of client funds.

In his legal response, Lee did not address the audit demands directly, instead focusing on the alleged hacking incident and asserting that all content on X was fabricated rumors. He announced that during daytime US time, the company would file a police report and send a lawyer's letter to X, demanding technical and data forensics to prove the account compromise. Regarding the unpaid staff, the founder of the Cayman Islands-based crypto exchange maintained that employee assets 'are not prioritized over client assets, everyone is a client, and there are no privileges.' This stance suggests a rigid adherence to a specific hierarchy of claims, potentially placing employees on equal footing with retail users rather than granting them preferential treatment in the distribution of remaining assets.

Woofun AI data shows that user backlash has been swift and severe, with specific accounts detailing significant losses and poor communication practices. An X user known as BeardStaff reported that their assets had been inaccessible since the July 26 announcement, noting that a dedicated VIP manager removed them from Telegram the day withdrawals stalled. "Where is my $10 million?" they posted, highlighting the magnitude of individual exposure. Another user, @chicha_liam, dismissed Lee's hacked account claim entirely, writing, "No one asked you if the account was hacked or not. Answer what people have been asking you since July 26. When will users be able to withdraw their funds?" Onchain investigator ZachXBT also pushed back against the vague statements, arguing, "If you actually have the liquidity, then simply return the funds to everyone instead of posting vague statements."

Structurally, the situation may require professional restructuring, as Roshan Dharia, CEO of distressed investment firm Echo Base, stated that his firm has offered BitMart a funded restructuring package. This offer includes debtor-in-possession financing and equity at emergence, underwritten by Echo Base as a claimholder, but Dharia noted that BitMart has not responded. "A custodial book this size can't be resolved consensually, because you can't reliably reach such a dispersed retail customer base, and every user you miss keeps a claim in full," Dharia explained. He warned that there is no version of this that ends well without going to court, stating, "The only question for the board is whether BitMart walks in with a plan and a funded sponsor, or is taken there by its own claimants."

The final ultimatum issued by the unidentified poster on X threatens to escalate the matter beyond corporate negotiations if no verifiable response is received by the deadline. The poster vowed to submit all available data, fund leads, and evidence to law enforcement, regulators, lawyers, and the media worldwide. This move signals a potential shift from public pressure to formal legal and regulatory intervention, increasing the risk of severe consequences for the exchange's leadership. This marks a critical juncture where the lack of transparency could lead to coordinated global scrutiny, forcing a resolution through external authorities rather than internal management decisions.