LBank has rejected claims that it restricts profitable traders after a Korean user accused the exchange of freezing roughly $1 million in USDT and preventing him from closing futures positions that were later liquidated.
Summary
- LBank says profits alone do not trigger restrictions and describes the account as under review.
- The trader says withdrawal and futures restrictions began separately in September, before an October rejection.
- ZachXBT has criticized similar influencer endorsements shared in response to the exchange’s statement.
LBank, responding in a Nov. 10 X post, said trading and withdrawals were running normally across its platform and that it was working directly with the affected user. The trader disputed that account, saying private attempts to resolve the matter had produced no meaningful response.
“We don’t restrict accounts just because someone makes a profit,” the exchange wrote.
Trader says LBank restrictions left positions unable to close
According to the account @solyflw34, the dispute began after profitable high-leverage futures trading from Aug. 31. His initial post named XRP, DOGE, XLM, NEAR, FIL and SUI among the assets traded, describing them as major altcoins with relatively high market capitalizations and trading volumes.
While withdrawing part of his funds on Sept. 19, the trader said, withdrawals were restricted without warning. LBank requested further verification and identity checks, which he said he completed before waiting for a response.
On Sept. 29, the exchange restricted futures trading and requested a more detailed explanation of his activity, according to his timeline. He said the restrictions prevented him from managing or closing existing positions, which were eventually liquidated as prices fell.
The user distinguished those liquidations from the balance he still wants released: approximately 1 million USDT remaining in his spot account. His posts do not describe the entire disputed sum as money lost through liquidation.
An Oct. 14 response, reproduced in a screenshot he shared, stated that “the relevant abnormal funds will not be released.”
He said he repeatedly asked which orders were considered abnormal, which trades allegedly involved manipulation, which other accounts were linked to him, and exactly how much money the exchange had classified as abnormal. He maintains that none of those questions received a detailed answer.
Risk-control message cites devices and trading patterns
In the message attributed to LBank’s Risk Control Team, the exchange cited virtual environments used for registration or login, device modification tools, abnormal device fingerprints, and emulator-related features.
Its review said those findings indicated patterns commonly associated with multiple accounts operating under coordinated control. The message separately alleged suspiciously timed position openings and closings and trading patterns that followed coordinated market activity, raising concerns about possible manipulation or insider trading.
Citing provisions of its user agreement, the team said the affected funds would not be released. The reproduced message did not identify specific orders, associated accounts, or the agreement clauses supporting its decision.
Rejecting the allegations, the trader posted trading-history screenshots and links to supporting files, saying his activity was legitimate. A separate post from @eth_apple, who described him as a friend, repeated the complaint and said he was trading his own money.
LBank threatens legal action as trader disputes cooperation
In its public response, LBank said it had engaged outside legal counsel to address statements it considered false or misleading. It warned that people publishing defamatory claims could face legal action and asked media outlets and creators to correct inaccurate coverage.
The company said it would share information while protecting the user’s privacy.
Replying to that statement, the trader said he had contacted his account manager and customer support and sent a formal legal notice to the exchange’s legal team. He said he allowed seven days for a response before making the dispute public.
He further said he would bring the matter to the attention of organizations including Bithumb and the Digital Asset eXchange Alliance, known as DAXA.
ZachXBT criticizes similar influencer endorsements
Blockchain investigator ZachXBT criticized a group of favorable posts about LBank, accusing its key opinion leaders of quoting the exchange with “the same script.”
His screenshot showed several accounts describing long relationships with the team and praising its communication or handling of problems. Some explicitly referred to working with LBank.
Separately, crypto.news previously reported that South Korea ordered 27 exchange websites blocked in October over unregistered operations, including KuCoin, MEXC and BingX.
In Kazakhstan, LBank was removed from court injunctions after restricting access to its services, according to an Oct. 20 account of proceedings. The court amended its judgment on Sept. 18, leaving six other platforms subject to the orders.
