BitMart Founder Under Fire as Binance bStocks Surges

BitMart's founder Sheldon Xia is facing public pressure after the exchange's official Chinese-language X account demanded he explain the status of user funds and provide a verifiable repayment plan. The demand comes amid claims that some users are unable to withdraw their funds, and that employees have not received their final salaries or compensation.

Xia rejected the allegations as 'fabricated rumors' and said BitMart had collected full evidence of the content posted on X. He vowed to file a police report during U.S. daytime hours and send a lawyer's letter seeking technical and data forensics.

Meanwhile, Binance's bStocks has overtaken xStocks to become the second-largest tokenized stock issuer by value, with a total value of around $624 million as of August 3. This is less than two months after bStocks began operating.