An OpenGradient co-founder says his market-making team's funds are stuck on BitMart and has questioned the exchange's solvency. BitMart, which is winding down its global platform, maintains that withdrawals still work, but a separate project has also reported delayed payouts. Founder Sheldon Xia has denied misusing funds without releasing reserve data.
A co-founder of decentralized AI network OpenGradient says his market-making team can no longer pull its funds off BitMart, adding a fresh insolvency allegation to the exchange's wind-down.
Market maker questions BitMart's solvency
Matthew, the OpenGradient co-founder, said his team cannot withdraw its assets from the exchange and argued BitMart is insolvent. He also alleged that BitMart kept encouraging token holders to lock funds about one week before halting related services, a timing he described as shocking.
According to Matthew's public post: "it was always just a play for liquidity." He did not disclose the value or type of assets his team holds, and BitMart had not issued a direct response at the time of writing. There is no confirmed evidence establishing that the exchange is insolvent.
Withdrawal complaints mount during shutdown
BitMart began a phased shutdown of its global exchange on July 26, halting new registrations, deposits and spot orders while moving futures accounts into reduce-only mode. All trading services are due to end at 01:00 UTC on Aug. 26, and BitMart plans to terminate its trading-platform operations on Jan. 31, 2027.
For a centralized exchange mid-shutdown, BitMart says withdrawal requests remain available but may face identity checks, source-of-funds reviews, wallet-ownership verification and sanctions screening. The exchange has urged customers to file requests before 05:00 UTC on Aug. 26.
Separately, Scandic Coin reported that about 21,898 USDT and 926,635 SNC submitted on July 26 remained unprocessed, though the project stopped short of calling BitMart insolvent and instead asked for verifiable proof of liquidity.
Founder denies misusing funds, reserve report still missing
Founder Sheldon Xia responded to the broader concerns on Aug. 8, saying the exchange had not run away and would not run away. He said the core team was conducting an asset inventory and consolidating assets, but he gave no reserve figures, withdrawal-processing data or repayment timetable.
The exchange said in May it was preparing to publish proof of reserves after earlier withdrawal complaints; that report still has not appeared. Until BitMart publishes verifiable asset and liability data, the insolvency allegation remains unproven.
Source: crypto.news
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