BitMart founder disputes claims; Binance bStocks surge: Asia Express
Cointelegraph's Asia Express covers BitMart's X account demanding founder Sheldon Xia explain user funds, which he calls fabricated; Binance bStocks surpass xStocks as second-largest tokenized stock issuer. Other stories include Bank Leumi-Galaxy crypto trading, Metaplanet's denied Bitcoin sale, and Singapore's tax rules.
Quick Take
BitMart's Chinese X account demands founder explain funds; Xia denies as fabricated.
Binance bStocks hit $624M, overtaking xStocks as second-largest tokenized stock issuer.
Bank Leumi partners Galaxy to offer BTC, ETH, SOL trading from 2027.
Metaplanet CEO says 5,014 BTC transfer was custody, no sale.
Market Impact Analysis
NeutralMixed signals: adoption/tokenized stock growth and Metaplanet custody denial support bullish sentiment, while BitMart allegations create bearish exchange risk.
Speculation Analysis
Key Takeaways
- BitMart's Chinese X account publicly demanded founder Sheldon Xia explain user funds and provide a repayment plan after withdrawal issues surfaced.
- Xia called the allegations fabricated and promised a police report and legal action against the platform X.
- Binance bStocks hit $624 million, overtaking xStocks as the second-largest tokenized stock issuer behind Ondo Finance.
- Bank Leumi will partner with Galaxy Digital to offer BTC, ETH, and SOL trading from early 2027, a first for Israeli banks.
- Metaplanet CEO confirmed a 5,014 BTC transfer was routine custody, not a sale, with no Bitcoin sold.
What Happened
BitMart's official Chinese-language X account publicly demanded founder Sheldon Xia explain user funds and present a repayment plan. The account cited reports of users unable to withdraw and employees missing final compensation. Xia called the claims fabricated and promised a police report and lawyer's letter to X. Separately, Binance bStocks surpassed xStocks as the second-largest tokenized stock issuer. Elsewhere, Bank Leumi partnered with Galaxy Digital to offer crypto trading from 2027, Metaplanet's CEO confirmed a 5,014 BTC transfer was custody only, and Singapore set mandatory CARF reporting for January 1, 2027.
The Numbers
Binance bStocks reached $624 million on Aug. 3, topping xStocks at $579 million. Ondo Finance led the tokenized stock sector at $927 million. A year ago, xStocks held $40.7 million, Robinhood $37.2 million, and Ondo just $65,000. Total tracked tokenized stock value jumped from $80 million to $2.7 billion. Metaplanet moved 5,014 BTC ($322 million) in custody operations; its total holdings stand at 43,000 BTC with an unrealized loss near $1.4 billion. Singapore's CARF reporting begins January 1, 2027.
Why It Happened
The BitMart conflict emerged after the exchange's Chinese X account reported users could not withdraw funds and employees were unpaid, escalating into a public demand for transparency. Xia dismissed the post as fabricated, setting up a legal confrontation. Binance bStocks surged as tokenized equities attracted capital, with the sector growing from $80 million to $2.7 billion. Bank Leumi's partnership with Galaxy responds to rising client demand for crypto exposure. Metaplanet clarified its transfer to counter market panic over a possible sale. Singapore's CARF rule reflects international moves toward crypto tax reporting.
Broader Impact
The BitMart dispute underscores exchange transparency risks, while tokenized stock growth signals a maturing on-chain equities market. Bank Leumi's entry marks Israel's first bank-backed crypto trading, potentially pressuring regional peers. Metaplanet's custody clarification reinforces corporate Bitcoin treasury confidence. Singapore's CARF reporting aligns with global tax standards, pushing exchanges to enhance compliance infrastructure.
What to Watch Next
- Monitor whether BitMart or Xia files legal actions or provides a repayment plan; exchange withdrawals could face more scrutiny.
- Track tokenized stock issuer rankings as Binance bStocks challenge Ondo Finance for the top spot.
- Watch for Bank Leumi's crypto trading launch in early 2027 and any regulatory hurdles in Israel.
This article is for informational purposes only and does not constitute financial advice.
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