BitMart faces insolvency claim over frozen withdrawals

BitMart is facing a new insolvency allegation after an OpenGradient co-founder said his market-making team could no longer withdraw funds locked on the exchange. Summary An OpenGradient co-founder said his market maker’s BitMart withdrawals remain frozen. He alleged BitMart encouraged token holders to lock assets shortly before restricting services. BitMart is winding down operations but maintains that withdrawals remain available. Founder Sheldon Xia denied misusing funds, but BitMart has not published a full proof-of-reserves report. Market maker questions BitMart’s solvency Matthew, a co-founder of decentralized AI network OpenGradient, said his market-making team has funds trapped on BitMart and questioned whether the exchange remains solvent. According to Matthew, the team cannot withdraw its assets from the centralized trading platform. He also alleged that BitMart continued encouraging token holders to lock funds on the exchange about one week before halting the related services. Matthew described the timing as “shocking” and claimed the lockup campaign may have been intended to bring additional liquidity onto the platform. BitMart had not issued a direct response to his all...