BitMart Founder Pressured to Disclose User Funds, Responds with Legal Threats
Leading global cryptocurrency exchange BitMart is embroiled in public controversy after its official Chinese-language X account demanded that founder Sheldon Xia disclose the status of user funds and set forth a concrete repayment plan. The dispute has brought new scrutiny to BitMart’s internal operations and sparked broader discussions about transparency and accountability in the cryptocurrency industry.
The Public Demand: Unpaid Users and Employees Add Pressure
BitMart’s official Chinese-language X account published a stark message targeting founder Sheldon Xia, calling for a transparent explanation about the whereabouts of user assets. The post revealed that multiple users have been unable to withdraw funds from the platform, while some employees have yet to receive their final salaries or compensations. The account went as far as accusing Xia of delaying vital updates regarding both user withdrawals and employment settlements.
Moreover, the public message included a clear ultimatum: if Xia failed to provide a verifiable asset disclosure and a structured repayment plan by a set deadline, the account would escalate the issue by submitting evidence to regulators, law enforcement, legal representatives, and the media. This move signaled mounting frustration within segments of the company and its user base, raising the stakes for one of the world’s more prominent exchanges.
Xia’s Response: Denial and Legal Counterattack
In response, BitMart’s founder Sheldon Xia issued a categorical denial, labeling the claims as “fabricated rumors.” Xia insisted that the content posted on X was entirely false and promised a vigorous legal response. According to his statement, legal actions are underway, including the filing of a police report and demands for technical and data forensics from X’s platform. Xia pledged to counteract what he described as a malicious misinformation campaign.
This escalating internal dispute has heightened concerns about BitMart’s governance and crisis management. As users and employees await further updates, industry observers are watching to see if transparency and communication will improve—or if the schism will deepen.
Binance bStocks Rapidly Climbs Tokenized Stock Issuer Rankings
In an impressive market shift, Binance’s newly launched bStocks platform has surged to the position of the world’s second-largest tokenized stock issuer by value. In less than two months since its launch, bStocks achieved a market value of approximately $624 million as of August 3, overtaking xStocks at $579 million and trailing only behind Ondo Finance, which commands about $927 million in value.
The tokenized stock market has experienced dramatic growth and shifting leaders over the past year. Just a year ago, xStocks dominated the market with a value of $40.7 million, while Robinhood stood at $37.2 million and Ondo was a minor player with only $65,000. According to industry data, the total tokenized stock market tracked has soared from roughly $80 million to about $2.7 billion within a year, illustrating the rising demand for digital representations of traditional securities.
North Korean IT Workers Unwittingly Exposed by Fake Crypto Startup
Suspected North Korean IT professionals were recently tricked into joining a fake cryptocurrency startup—part of a sophisticated sting operation orchestrated to gather valuable intelligence. Over the course of the operation, potential illegitimate activities by North Korean workers were closely monitored, revealing insights into how North Korea seeks to infiltrate the international crypto and IT workforce.
The fictitious startup, played by security investigators, mimicked real-world crypto business practices to attract North Korean talent. These workers, believing they were working for a legitimate venture, pitched for venture capital funding, exposing their processes, methods, and network connections. The operation represents a concerted effort by independent cybersecurity experts and media to disrupt illicit state-sponsored schemes leveraging cryptocurrencies for revenue and intelligence gathering.
Israel’s Largest Bank to Offer Bitcoin, Ether, and Solana Trading
Israel’s banking sector is taking a historic step toward embracing cryptocurrency. Bank Leumi, the country’s largest financial institution, has announced a partnership with Galaxy Digital to provide customers with direct access to Bitcoin, Ether, and Solana trading on its investment platform starting in early 2027.
In a joint statement, Bank Leumi and Galaxy Digital revealed that both Leumi customers and users of Pepper, its mobile banking service, will soon be able to buy, hold, and sell the three cryptocurrencies via a dedicated section of the bank’s trading application. The move signals increasing acceptance of digital assets within mainstream banking and could serve as a catalyst for further crypto integration among traditional financial institutions worldwide.
Japan’s Metaplanet CEO Dispels Bitcoin Sale Rumors Amid Large Transfer
Simon Gerovich, CEO of Japanese Bitcoin treasury company Metaplanet, addressed widespread speculation after the company transferred 5,014 BTC—worth approximately $322 million—over a 24-hour span last week. The transfer led to rumors that Metaplanet might be offloading part of its massive Bitcoin holdings.
Gerovich swiftly shut down the rumors, explaining that the movement was a routine custody operation and affirming that no Bitcoin was sold as a result. Metaplanet continues to maintain holdings of 43,000 BTC, making it the third-largest publicly traded Bitcoin treasury globally and the largest in Asia. Despite this significant position, Metaplanet is reportedly sitting on an unrealized loss of about $1.4 billion, according to treasury analytics data. The company’s transparency and prompt communication have reassured investors and the market, highlighting the importance of clear messaging in the digital asset space.
MUFG Trials On-Chain Bond Repo Transactions in Japan
A consortium of four companies within Japan’s Mitsubishi UFJ Financial Group (MUFG) is launching a proof of concept (PoC) to bring Japanese government bond repo transactions onchain. The initiative will utilize the Canton Network, a leading blockchain infrastructure, as MUFG and its subsidiaries seek to modernize financial market operations.
The primary objectives are enhancing operational efficiency through automation, enabling real-time settlement around the clock, and improving capital and funding outcomes. This PoC signals Japanese financial institutions’ ongoing commitment to blockchain integration, which could streamline the transaction lifecycle and boost competitiveness throughout the region’s capital markets.
Singapore Mandates Crypto Tax Reporting in Regulatory Overhaul
Singapore has finalized a significant regulatory update, requiring all crypto firms to report user transactions to its national tax department. The newly adopted rules incorporate the OECD’s Crypto-Asset Reporting Framework directly into Singapore’s domestic law.
Under the new regulation, crypto companies serving new users will be required to comply by January 1, 2027, while existing users have until December 31, 2027. Singapore’s proactive approach places it at the forefront of global efforts to standardize crypto taxation, increase compliance, and ensure transparent financial reporting in the digital economy. Tax authorities expect the measures to curb tax evasion and align Singapore with international best practices for crypto regulation.
Binance and RedotPay Locked in $473 Million Legal Dispute
A heated legal battle between Binance and RedotPay continues to unfold, with both parties disputing the outcome of a Singaporean case related to a nearly $473 million lawsuit in Hong Kong. RedotPay, a major stablecoin payments card issuer, has claimed that Binance plans to discontinue the Singapore proceedings and has signaled intentions to seek legal costs from the exchange. However, Binance contests this narrative, stating unequivocally that it is not withdrawing its claims, and that both the court and RedotPay have been notified of its intent to proceed.
The dispute originated from allegations by Binance that RedotPay diverted more than 470,000 Binance Card users by facilitating Binance Pay funds for stablecoin top-ups in violation of a commercial agreement. At the same time, reports have surfaced that RedotPay’s US IPO ambitions have been delayed as it seeks the requisite regulatory approvals. The resolution of this legal confrontation could set precedents for stablecoin card payments and commercial partnerships within the crypto industry.
South Korea’s Shinhan Asset Management and Plume Explore Tokenization Pilot
South Korea is advancing its fintech ambitions as Shinhan Asset Management signs a memorandum of understanding (MOU) with Plume, a blockchain network specializing in asset tokenization. Together, they will conduct a proof of concept for a Korean won-denominated tokenized fund—one of the first such pilots to emphasize local currency assets on blockchain.
The initiative is designed to explore the overseas potential of won-denominated financial products, which could broaden Korean financial products’ appeal in a predominantly dollar-denominated global crypto market. By bridging traditional finance with blockchain technology, Shinhan and Plume aim to unlock new opportunities for portfolio diversification and capital market efficiency.
HashKey Launches Beta Offering of Regulated Hong Kong Dollar Stablecoin
Hong Kong’s regulated crypto market reached a new milestone as Standard Chartered-led Anchorpoint Financial initiated the beta rollout of HKDAP, the city’s first stablecoin fully backed by the Hong Kong dollar. HashKey Exchange will serve as an authorized distributor, though initial access will be restricted to institutional clients, with plans to include a broader retail audience in the future.
The introduction of HKDAP comes amid efforts to establish a robust, compliant stablecoin framework in the Asian financial hub. Simultaneously, Hong Kong’s Securities and Futures Commission has reported the discovery of 65 fraudulent websites posing as HashKey, highlighting the importance of investor awareness and robust regulatory enforcement as the local stablecoin market evolves.
