Hello everyone, I am a BitMart employee, and today I am disclosing the inside story of this exit scam.
On July 25, BitMart announced to the public that the company was closing due to "poor management."
However, according to the internal information I have, it was not a simple business failure.
The real process was: Sheldon discovered a capital deficit → transferred user assets to personal wallets → used high-interest wealth management to continue absorbing user funds → restricted withdrawals → finally announced the platform's closure.
This was not a normal bankruptcy liquidation, but a pre-planned exit scam involving the transfer of user assets.
Timeline Reconstruction:
On June 10, Sheldon began the first round of layoffs.
Prior to this, the company discovered a serious deficit on the books due to a wash trading incident in April.
Consequently, Sheldon began successively transferring over 20 million USDT of user assets. After that, the platform gradually began to see failures in the approval of large withdrawals.
However, because the finance department continued to pull in deposits for BitMart, new funds kept coming in, allowing the platform to temporarily maintain some withdrawals. As a result, many users did not notice the problem immediately.
As the financial pressure grew, the company launched:
- 12% APY, 399-day USDT principal-protected wealth management
- Promoted with no subscription limits
The goal was to continue attracting funds into the platform.
As employees and users grew suspicious, Sheldon further launched on July 23:
- 18.88% APY, 10-day USDT principal-protected wealth management
This was intended to continue attracting user deposits to fill the withdrawal gap.
With these guaranteed returns, if it's not a scam, what is it? In the 2026 market, common returns on major exchanges are less than 5%. BitMart offered 12% and 18.88% guaranteed returns with no underlying physical profit to support them; it was entirely a Ponzi scheme. Additionally, it is worth noting that in the past six months, BitMart absorbed over 40 million USDT in user funds through high-interest products.
July 23: The Bank Run Officially Breaks Out
That evening, BitMart's platform token, BMX, plummeted, with the price dropping from about 0.3 USDT to 0.1 USDT.
The root cause was actually quite ridiculous: a BitMart executive mismanaged their position, leading to millions of staked BMX being liquidated and sold by the system, triggering panic selling among BMX holders.
The drop in the platform token triggered a massive wave of panic withdrawals.
From that moment on, a severe bank run occurred:
- Large withdrawals entered a state of long-term non-approval;
- Some withdrawals were directly rejected;
- Balances across multiple chains and currencies gradually dropped to zero.
Thus, Sheldon moved his exit plan forward.
July 24: The Platform Enters the Final Stage
On July 24, the company arranged for employees to work overtime to take down numerous services.
At that time, ordinary employees still didn't know the real reason, thinking the company was just reducing operating costs.
But in reality:
- Balances on multiple paths had already hit zero;
- Users could only repeatedly cancel withdrawals and try other paths;
- Withdrawals over $10,000 basically could not pass approval.
On the same day, the company ordered the wealth management front-end to urgently remove the "Redeem" button, depriving users who could have redeemed their funds early of their last exit channel.
Abnormal Events Occurring Simultaneously:
1. During the week of July 21, the company required formal employees to sign resignation agreements under the guise of an "entity change."
Subsequent labor relations were all changed to consultant contracts. For employees who refused to sign, HR directly sent termination emails. Many employees have saved relevant evidence.
That same week, the head of finance notified subordinates to transfer their own funds as soon as possible.
Meanwhile, they continued to assist Sheldon in processing platform assets. Terminating formal labor contracts was part of the exit scam; many employees with over 5 years of seniority saw their deserved compensation wiped out under this operation.
2. On July 24, CEO Nenter, hired by Sheldon, was removed from his position.
That week, several high-ranking officials, including the US regional head and the legal head, resigned due to dissatisfaction with Sheldon's transfer of user assets. The head of finance resigned but was later invited back to the company.
3. On July 23, BitMart's self-operated market-making team, Proton, withdrew funds from external exchanges in advance.
However, part of these funds was also pocketed by Sheldon and was not used to compensate users or employees.
4. On July 25, the company began a comprehensive lockout of employee permissions.
This included:
- Closing employee Lark private messages;
- Revoking system permissions;
- Remotely locking many computers (including some employees' personal computers that were forcibly locked because they had the company's cloud software installed).
At the same time, some executives and the HR team modified their Lark identity information. Executives asked employees not to post or seek rights protection, promising a 1-on-1 explanation on Monday.
Ultimately, the company only announced via a Lark notice on Wednesday:
- Employee salaries would be paid up to July 24;
- No severance would be paid;
- Overtime pay and other expenses would not be processed.
This is Not Bankruptcy; It is an Exit Scam After Asset Transfer
If a company discovers a capital deficit and, instead of choosing to replenish funds or publicly disclose risks, chooses to:
→ Transfer user assets
→ Launch high-interest products to continue absorbing deposits
→ Close redemption portals
→ Restrict user withdrawals
→ Terminate employee relations
→ Finally announce closure
Then there is a fundamental difference between this and "poor management" in the ordinary sense.
What Happened After BitMart Closed?
According to internal knowledge, after the platform closed, Sheldon prepared to pocket all the coins, only scraping together about 2 million USDT from existing exchange assets:
- About 1 million for employee salaries;
- About 1 million for user withdrawals.
This is why:
- Daily on-chain deposit amounts are only a few tens of thousands of USDT;
- Employee salary payments continue to be delayed;
- User withdrawal limits are extremely low; as of July 31, the maximum single-currency withdrawal limit has dropped to 100 USDT;
- Withdrawal fees have been adjusted to 10% (Sheldon, you are too kind; why not adjust it to 99% so you wouldn't even need to run away?).
Currently, many internal employees have months or even a year's worth of salary stuck in wealth management that they cannot get back. One can imagine the difficulty for ordinary users to recover their assets.
Attention WooxPro Users
Currently, Sheldon has begun transferring some executives to WooxPro, preparing to replicate the BitMart exit scam.
This exchange is a platform Sheldon acquired in January 2026. Most parts of the platform are identical to BitMart, and the employees are BitMart employees. After the acquisition, it attracted a large amount of user funds through activities like "deposit as much as you get."
I hope WooxPro users withdraw their funds in time to prevent the BitMart tragedy from happening again.
Finally
Executives currently confirmed to be actively cooperating with Sheldon in the transfer of user assets include, but are not limited to:
- F (CTO)
- T (Technical Director)
- C (HRD)
- S (Head of President's Office, Head of Spot)
I had no intention of making public what the company and all of you have done; today I have simply listed a timeline of some events. However, if the legal and reasonable compensation for employees is not resolved, I will begin to disclose more facts and evidentiary details to facilitate users in filing lawsuits against you.
I also welcome BitMart employees, users, and those who know the inside story to contact me at bmzgrb3@yeah.net. We will jointly disclose the facts and protect our legal rights.
