BitMart Shutdown Marred by Asset Misappropriation Allegations
BitMart's shutdown has been marred by controversy after founder Sheldon Xia denied allegations of asset misappropriation. In a series of tweets, Xia stated that the exchange is undergoing an 'organized wind-down' and claimed that no assets have been stolen.
The company announced on July 26 that it would be shutting down due to shifting market conditions and internal evaluations. New user registrations and deposits were suspended immediately, with all spot and futures trading set to cease on August 26 and the platform ending its primary operations by January 31, 2027.
However, users have reported delayed or frozen withdrawal requests, with some funds appearing to be moved from the platform. This has led to a loss of trust in BitMart's native token BMX, which has seen a 60-70% drop in value since the shutdown announcement.
The dismissal of Global CEO Nathan Zhou has also raised questions about the company's internal state. Zhou claimed that he was fired on July 24, two days before the shutdown announcement, and had not been involved in the decision-making process.