Matthew Wang, co-founder of OpenGradient, a decentralized verifiable AI project, said that his market-making team’s funds are stuck on BitMart and cannot be withdrawn from the exchange.
“The platform is insolvent,” he said.
Wang also said that one week before announcing the shutdown, the exchange offered token holders the option to lock their assets on the platform.
Since July 26, users have been reporting widespread withdrawal issues. One client with a balance of around $10.1 M, for example, said that they had not been able to withdraw “a single dollar” since that date. Their VIP manager deleted their Telegram account, while other employees stopped responding or disappeared, even though the exchange’s team continued to support clients until the shutdown was announced.
Several projects, including Paxi Network and Scandic Coin, also reported unresolved withdrawal requests submitted immediately after the shutdown announcement. On-chain data shows a sharp decline in wallet balances linked to the exchange, as well as very few successful large withdrawals.
However, two days before Wang’s post, BitMart founder Sheldon Xia said that the platform had not disappeared and was not taking customers’ assets. According to him, the core team is conducting an inventory and consolidating assets, with the goal of an orderly wind-down.
“Do not believe rumors or screenshots from former and current employees, and wait for official announcements,” he wrote.
BitMart announced on July 26 that it would gradually cease operations. As of that date, the platform restricted new user registrations, deposits, and the placement of new orders. All trading services will be suspended on August 26, while the full closure of operations is scheduled for January 31, 2027. According to the exchange, withdrawals are expected to remain available.