**BitMart Account Demands Founder Explain Funds Status, Xia Calls Claims ‘Fabricated’**
BitMart’s official Chinese-language X account has publicly demanded that founder Sheldon Xia explain the whereabouts of user funds and produce a repayment plan. The exchange’s message, conveyed through a post on X (formerly Twitter), asserted that some users are currently unable to withdraw their funds. Furthermore, it stated that some employees have not yet received their final salaries or other compensation. The post set a deadline, urging Xia to provide a verifiable asset disclosure and a concrete repayment plan. Should he fail to comply, the message threatened that the exchange would continue submitting evidence to regulators, law enforcement agencies, lawyers, and the media.
In response to these allegations, Sheldon Xia dismissed the claims as “fabricated rumors.” He promised a counter-attack, stating that his team had already collected all evidence related to the content on X. Xia announced plans to file a police report and send a lawyer’s letter, demanding technical and data forensics to investigate the origins of the claims.
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### **Other Major Crypto News This Week**
In other cryptocurrency news, Binance bStocks have surpassed xStocks to become the second-largest tokenized stock issuer by value, reaching approximately $624 million just under two months after launch. Meanwhile, Metaplanet CEO Simon Gerovich addressed speculation about the sale of the company’s Bitcoin holdings, clarifying that a recent transfer of 5,014 BTC was a routine custody operation and that no Bitcoin was sold.
Regionally, Israel’s largest bank, Bank Leumi, partnered with Galaxy Digital to allow customers to trade Bitcoin, Ether, and Solana. In Singapore, new regulations mandate that crypto firms report user transactions to tax authorities starting in 2027. Additionally, MUFG is exploring the use of the Canton Network to bring Japanese government bond repo transactions on-chain, aiming to improve efficiency and settlement times.
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### **FAQ**
**1. What are the allegations against BitMart founder Sheldon Xia?**
The allegations claim that user funds are currently inaccessible and that some employees have not received their final salaries or compensation. The demands call for Xia to disclose his assets and present a clear repayment plan to address these issues.
**2. How did Sheldon Xia respond to the allegations?**
Sheldon Xia labeled the claims “fabricated rumors” and announced plans to counter-attack. His response includes filing a police report and sending a lawyer’s letter requesting technical and data forensics to investigate the source of the allegations.
**3. What is Binance bStocks?**
Binance bStocks is Binance’s tokenized stock issuance platform, which allows companies to issue tokenized representations of traditional stocks on the blockchain. Recently, it became the second-largest tokenized stock issuer by value, overtaking xStocks.
**4. What did Metaplanet CEO Simon Gerovich say about the Bitcoin transfer?**
Gerovich clarified that the transfer of 5,014 BTC was a routine custody operation and denied rumors of the company selling its Bitcoin holdings. He emphasized that the company’s Bitcoin holdings remain intact at 43,000 BTC.
**5. What new regulations were introduced in Singapore regarding crypto?**
Singapore has finalized regulations requiring crypto firms to report user transactions to the tax department. These rules implement the OECD’s Crypto-Asset Reporting Framework and take effect from January 1, 2027, for new users, with existing users given until December 31, 2027, to comply.
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### **Conclusion**
The developments surrounding BitMart highlight ongoing concerns about transparency and accountability within the cryptocurrency exchange sector, particularly regarding user funds and employee compensation. As the situation unfolds, the demand for verifiable asset disclosures and clear repayment plans may set a precedent for handling similar issues in the future. Meanwhile, the broader crypto ecosystem continues to evolve, with advancements in tokenized assets, regulatory frameworks, and institutional adoption shaping the industry’s trajectory. Users and stakeholders are advised to stay informed and exercise due diligence in this rapidly changing landscape.
