BitMart founder Sheldon Lee dismissed audit demands after users reported blocked funds and employees went unpaid. Lee claimed a Chinese-language X account posting the allegations had been compromised, rather than addressing the underlying complaints directly.
The exchange faced mounting pressure to conduct a comprehensive financial audit. Users demanded full disclosure of wallets, assets, and liabilities. The lack of transparency fueled concerns about BitMart's operational stability and fund management practices.
Multiple employees confirmed they had not received compensation, signaling internal financial strain. Simultaneously, users reported their assets remained inaccessible on the platform, raising questions about reserve adequacy and withdrawal capabilities.
BitMart has not released audited financials or conducted third-party verification of its holdings. The exchange operates with minimal regulatory oversight despite handling customer deposits and managing significant trading volumes. Lee's dismissal of the hacked account claim without substantive response failed to address the concrete reports from both staff and users.
The situation mirrors patterns seen at other exchange failures, where founders initially downplayed solvency concerns before larger problems emerged. BitMart processed billions in daily trading volume before these issues surfaced, making the fund accessibility reports particularly troubling for active traders holding positions on the platform.
Users voiced frustration over the lack of concrete action. Some called for voluntary liquidation or formal regulatory intervention. The founder's defensive posture contrasted sharply with calls for operational transparency and reserve verification. Without independent audits or clear proof of solvency, user confidence continues eroding rapidly.
BitMart's parent company maintains headquarters in the Cayman Islands, operating under limited regulatory jurisdiction. The exchange's structure allows minimal disclosure requirements compared to traditional financial institutions. This regulatory arbitrage has become a focal point for critics questioning whether centralized exchanges should operate without mandatory reserve verification standards.