WOO X Withdrawal Crisis Sparks Concerns Over Solvency and Connection to BitMart
Crypto exchange WOO X is facing withdrawal issues after several verified users contacted pseudonymous blockchain investigator ZachXBT, citing pending withdrawals that have been stuck for up to three days.
The delays, which normally take minutes or hours, have raised questions about the 'why' behind this. However, it's essential to note that these issues do not necessarily mean WOO X is insolvent or that customer funds are lost.
WOO X eventually acknowledged the issue and stated they're working to resolve it. The exchange also provided a solution for users whose withdrawals are paused or failing due to KYC reasons, citing a fix implemented on September 7th.
The matter is further complicated by WOO X's connection to FusionX Digital, which is linked to Sheldon Xia, the founder of BitMart, who has been associated with WOO X since its transition in 2025. BitMart itself is undergoing a major winding-down process after announcing it would cease trading operations on July 26th.
The situation is critical as the next few days will determine whether WOO X's issues are operational or more severe. If delayed withdrawals clear and appear on-chain, it could suggest an operational issue. However, if complaints persist and withdrawal restrictions continue to rise, it may indicate a more significant problem.