BitMart founder Sheldon Lee has rejected mounting demands for an independent audit of the crypto exchange, even as a growing number of users complain of frozen funds and reports circulate of unpaid staff. Lee attributed some of the most damaging allegations to a compromised social media account, dismissing the pressure for greater financial transparency.
Founder Pushes Back on Claims
Lee said that a Chinese-language account on X, which had been amplifying the accusations against the exchange, was hacked. He suggested the claims spreading online did not reflect the true state of the company's operations, seeking to reassure the community amid the escalating controversy.
The response comes as users increasingly demand that BitMart open its books, calling for disclosure of the platform's wallet holdings, assets and liabilities. Such transparency measures have become a benchmark for exchanges seeking to prove solvency, particularly in the wake of high-profile collapses across the industry.
When users cannot withdraw their money, promises are no substitute for proof of reserves.
Users Report Trouble Accessing Funds
Complaints from customers center on blocked withdrawals and difficulty accessing balances held on the platform. For any exchange, reports of stalled withdrawals tend to trigger fears about liquidity and solvency, often prompting a rush of users trying to move their assets out.
Adding to the unease are accounts of unpaid employees, a signal that some observers interpret as a sign of deeper financial strain within the company. Combined with the withdrawal issues, these reports have fueled calls for outside verification of the exchange's financial health.
Critics argue that dismissing an audit only heightens suspicion. The demands facing BitMart typically include:
- Full disclosure of on-chain wallet addresses
- A clear breakdown of assets versus liabilities
- Independent verification of customer fund reserves
For now, Lee's refusal to commit to a third-party audit leaves affected users waiting for answers, with the dispute over the exchange's finances still unresolved.