BitMart will stop all trading on August 26, the exchange confirmed this week, but the promised orderly wind-down is already fraying. Users report blocked withdrawals, former employees say last month's salaries never arrived, and a public campaign is demanding CEO Sheldon Lee explain where customer money went by August 19.
The notice and the backlash
The July 26 notice stopped deposits and new registrations, and switched futures accounts to reduce-only mode. Login access runs until January 31, 2027. That sounds like a schedule. But the company has not provided reserve figures, a liability total, or a repayment timeline.
Lee dismissed the accusations as fabricated rumors, saying BitMart would file a police report and send a lawyer's letter to X. He also stated that employee assets carry no priority over client assets. That hasn't calmed anyone down.
What users saw
Within days of the wind-down notice, Ethereum withdrawals hit a 2026 high, and BMX, the exchange's token, crashed 46%. The timing isn't great. A Chinese-language account posting as BitMart 币市 published a five-point demand: Lee and partner Yi Li should disclose wallets, assets, liabilities, and usable reserves, all verifiable by a third party.
On-chain investigator ZachXBT criticized the vague statements, saying if liquidity exists, funds should be returned directly. No such return has been announced.
Wider stress in the market
Analysts view exchange closures as a healthy reset, though staff cuts at Luno pointed to broader strain. In Europe, regulators opened a custody review under MiCA after an earlier exchange collapse. The pattern is familiar: a platform says it's winding down, then the details get murky.
The August 19 deadline from the public campaign is the next concrete date. Lee has until then to explain where the money is. If he doesn't, the lawyer's letter and police report may be the only paperwork moving.
