BitMart Accused of Insolvency as Withdrawals Stay Frozen
SUMMARY
- OpenGradient co-founder Matthew Wang publicly accused BitMart of insolvency after his market-making funds became inaccessible on the exchange.
- Wang alleges BitMart pushed high-yield staking products a week before announcing its shutdown to lock in user liquidity.
- On-chain data shows withdrawals above $25,000 have largely stalled, and BitMart has not published a proof-of-reserves report.
- Founder Sheldon Xia denies any misappropriation, blaming delays on internal asset consolidation and manual reserve checks.
Matthew Wang, co-founder and CEO of decentralized AI network OpenGradient, has accused BitMart of insolvency after his firmโs market-making capital remained frozen on the exchange in the middle of its ongoing wind-down.
Wang, whose company raised $8.5 million from investors including a16z crypto, Coinbase Ventures and SV Angel, posted on X that his team could not get execution requests processed on BitMart, describing the platform as functionally insolvent rather than simply delayed. Before starting OpenGradient, Wang worked in quantitative equity options market-making at Two Sigma, a background he pointed to as the basis for his read on BitMartโs liquidity position. BitMart is the third mid-sized centralized exchange to announce a shutdown within weeks, following AscendEX and BitMEX.
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