A crypto exchange’s slow-motion shutdown is turning into a very public reckoning. BitMart, once a mid-tier player in the centralized exchange space, is trying to walk customers and its own staff through what it calls an “orderly” wind-down — but the process has exposed more questions than answers. The BitMart shutdown controversy has intensified over the past two weeks as users report frozen withdrawals, employees go public over missing paychecks, and a proof-of-reserves report first promised in May still hasn’t materialized.
Summary
Key takeaways
- BitMart’s trading is scheduled to end on August 26, 2026, with full closure set for January 31, 2027.
- Users and at least two crypto projects, OpenGradient and Scandic Coin, say withdrawals have been frozen or delayed.
- Employees claim they haven’t been paid for last month’s work, and staff have publicly named co-founder Sheldon and executive Li Yi.
- BitMart promised a proof-of-reserves report in May; as of August, it still hasn’t been published.
- BitMart has not filed for bankruptcy or insolvency, while rival exchange MEXC recently published a reserve audit showing a 288% Bitcoin reserve ratio.
BitMart’s shutdown timeline runs into 2027
BitMart’s closure isn’t a sudden collapse — it’s a scheduled, months-long process, and that’s precisely what makes the silence around its finances so unusual. On July 26, the exchange announced it would stop accepting new deposits, sign-ups, and orders that same day at 01:30 UTC. Spot and futures trading is set to end on August 26, 2026, at 01:00 UTC, and the company says it will officially shut down operations by January 31, 2027, at 15:59 UTC. After that date, customers will reportedly have only limited access to their accounts.
That’s a runway of roughly a year and a half between the first restrictions and total closure — plenty of time, in theory, for BitMart to demonstrate it can cover what it owes users. So far, that demonstration hasn’t happened.
Withdrawals freeze while users demand answers
Frozen withdrawals sit at the center of the crypto exchange withdrawals dispute now swirling around BitMart, with multiple parties — ordinary users and at least two crypto projects — saying their funds are stuck. Matthew, a co-founder of decentralized AI network OpenGradient, said on August 10 that his market-making team could not pull assets off the platform. “Our MM has our balances stuck on BitMart exchange that we can’t get out,” he wrote, adding that BitMart had been encouraging token holders to lock funds on the exchange roughly a week before restricting services — a timing he called “insane.” Separately, the project Scandic Coin said withdrawal requests covering roughly 21,898 USDT, 926,635 SNC, and another 256 USDT had gone unprocessed since being submitted on July 26. Scandic Coin didn’t declare BitMart insolvent outright but asked the exchange to show verifiable proof it holds enough liquidity to cover customer obligations.
Compliance checks could still delay payouts
BitMart maintains that withdrawals remain available throughout the wind-down, though it has warned users that requests may face additional checks — identity verification, source-of-funds review, wallet-ownership confirmation, and sanctions screening among them. The company has asked customers to submit withdrawal requests by 05:00 UTC on August 26, 2026, warning that anything submitted later will move into a separate process it hasn’t fully detailed. Arch Lending co-founder and CTO Himanshu Sahay told crypto.news that episodes like this expose a structural gap in digital-asset markets: the difference between what a platform says and what customers can independently verify. “This isn’t a new issue, but a recurring one that resurfaces whenever a platform faces operational stress,” Sahay said.
Employees say they haven’t been paid
The pressure isn’t only coming from traders. On August 17, an account posting under the name BitMart 币市 (@BitMart_zh) — not an official BitMart channel — publicly criticized the company’s management, tagging both co-founder Sheldon and the exchange’s official account. The post claimed that many users still couldn’t withdraw funds and that numerous employees had gone unpaid for the previous month, calling the situation something that “cannot be brushed off with a single ‘stop operations’ line.” The claims around unpaid employee wages at BitMart add a human dimension to what had largely been framed as a customer-fund dispute, suggesting the exchange’s financial strain — real or perceived — may extend beyond user accounts into payroll itself.
Proof of reserves promised in May still missing
Trust in any exchange winding down ultimately hinges on one question: can it prove it has the money it owes people? BitMart said in May that it would publish a proof-of-reserves report after earlier withdrawal complaints, blaming those initial issues on a volume-farming scheme it said involved 239 connected accounts. Almost three months later, that report still hasn’t appeared. The company has said it would release the disclosure “at an appropriate time,” but has offered no reserve figures, no withdrawal-processing data, and no repayment timetable.
OpenGradient raises solvency doubts
The absence of hard numbers is exactly what’s fueling accusations like the one from OpenGradient’s Matthew, who openly questioned whether BitMart remains solvent. Co-founder Sheldon pushed back publicly on August 8, insisting the company “didn’t run away” and “will not run away” in the future either. He said BitMart’s core team was still conducting an asset inventory and completing system maintenance ahead of the next phase of the shutdown, and he cautioned users against trusting screenshots or leaks circulated by current or former employees. Notably, Sheldon’s statement addressed intent, not numbers — it didn’t include reserve figures or independently verifiable data on assets versus liabilities.
No bankruptcy filing, as rivals publish reserves
Despite the mounting complaints, BitMart has not filed for bankruptcy or announced any insolvency proceeding. The Bitcoin Foundation, in a review published on July 27, noted that the exchange has also yet to disclose how long users will be able to continue withdrawing funds once operations formally cease. That lack of clarity leaves an open question about creditor priority and what happens to remaining balances after January 2027.
The contrast with the rest of the industry is hard to miss. Competitor MEXC published an August proof-of-reserves audit conducted by Hacken on August 14, showing reserve ratios above 100% across its main assets — including 288% for Bitcoin — and framed the release against a broader wave of exchange consolidation expected in 2026. Every audit a rival publishes while BitMart stays quiet gives competitors another reason for traders to move their funds elsewhere. For an industry still shadowed by memories of past exchange collapses, a shutdown without verified numbers reads less like an orderly exit and more like an open question mark — one that transparency, not scheduling, is the only thing that can close.
FAQ
What prompted BitMart to cease operations?
Following an examination of its operational circumstances, the crypto market environment, and its strategic outlook, BitMart announced on July 26, 2026 that it would proceed with winding down, though no specific cause was identified.
Are BitMart customers able to access their digital assets?
Crypto withdrawals continue to be permitted throughout the shutdown process; however, BitMart urges users to complete their identity verification and place withdrawal requests by 05:00 UTC on August 26, 2026, as certain submissions may require further regulatory scrutiny. In a related matter, an OpenGradient co-founder disclosed that his organization was unable to retrieve assets held on the platform.
Has BitMart published proof of reserves?
No. BitMart has not released a full proof-of-reserves report as promised in May, and the report remained unpublished as of August, leaving outside observers unable to confirm the exchange’s actual reserve position.
Are BitMart employees receiving their wages during the shutdown?
Many employees claim they have not received their last month’s salary amid the shutdown, according to public posts naming BitMart’s co-founder and management directly.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
