The cryptocurrency exchange LBank has publicly rejected allegations that it restricts profitable traders, following a South Korean user's claim that the platform froze approximately $1 million in USDT and prevented him from closing futures positions that were later liquidated.
The dispute centers on trader @solyfw34, who reported engaging in profitable high-leverage futures trading from August 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. According to the trader's timeline, withdrawal restrictions began on September 19 without warning, when LBank requested further KYC verification and identity checks. On September 29, the exchange restricted futures trading and requested a detailed explanation of his activity, which he said prevented him from managing or closing existing positions that were eventually liquidated as prices fell.
The trader distinguished the liquidations from the balance he still wants released: approximately 1 million USDT remaining in his spot account. An October 14 response, reproduced in a screenshot he shared, stated that "the relevant abnormal funds will not be released." The message from LBank's Risk Control Team cited virtual environments used for registration, device modification tools, abnormal device fingerprints, and emulator-related features. The review claimed these findings indicated patterns associated with multiple accounts under coordinated control, and separately alleged suspiciously timed position openings and closings suggesting possible market manipulation or insider trading.
LBank responded publicly on November 10, stating: "We don't restrict accounts just because someone makes a profit. Trading and withdrawals are running normally. We're working directly with the user on this account review." The exchange engaged outside legal counsel to address what it considered false or misleading statements and warned that people publishing defamatory claims could face legal action.
Blockchain investigator ZachXBT entered the controversy by criticizing LBank's key opinion leaders for quoting the exchange with "the same script" in coordinated endorsements. "LBank is just another offshore bucket shop CEX no serious trader should ever touch," ZachXBT stated. The trader said he will escalate the matter to Bithumb and the Digital Asset eXchange Alliance (DAXA), after sending a formal legal notice to LBank's legal team with a seven-day deadline that passed without a meaningful response.
