Key Takeaways:
- LBank is accused of freezing around 1 million USDT after a trader profited from its futures trading and denied him opening positions, according to a Korean trader.
- LBank says that profits are not the reason that an account gets restricted, and that they are reviewing accounts.
- ZachXBT, a blockchain authorizer, derided coordinated-looking influencer posts supporting the exchange.
LBank, a leading crypto exchange, is under investigation for freezing about USD 1 million and halting futures trading after several successful trades.
LBank refuted the notion that the restrictions were caused by profits, stating that there is no reason, trading and withdrawals are normal, and they are in direct contact with the user.
Let’s clear this up ????
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 and will share what we can while protecting their privacy.
If something isn’t right, tell us. Ask questions, share your experience and hold us accountable. That conversation belongs here, including criticism.
We’ll also defend ourselves against false claims. LBank has engaged external legal counsel to address false and misleading statements concerning this matter. The accompanying legal notice sets out our position.
Anyone who publishes or disseminates false and defamatory statements concerning this matter may face legal action. LBank will pursue appropriate legal remedies for any resulting damage to its reputation and legitimate interests.
To the media and creators covering this story: please check the facts before sharing, and correct anything inaccurate.
P.S. Nearly 100,000 of you trade futures on LBank every day. Let’s hear from you ????
— LBank.com (@LBank_Exchange) November 10, 2026
Trader Says Restrictions Began After Profitable Futures Trading
Apparently, the controversy started after the user, whose Twitter (X) handle is @solyflw34, engaged in the high-leverage futures game with large holdings of major cryptocurrencies including XRP, DOGE, XLM, NEAR, FIL and SUI.
???? LBank has frozen over $1M of my funds!
@LBank_Exchange @EH_LBank @xmuha0 @zachxbt @xiangzhang87 @ture_ath @Manjeet_LBank @Crypto__Haris
DO NOT USE THIS EXCHANGE
I made significant profits trading futures, and now my funds are frozen.
Here’s what happened ????
1️⃣ Aug 31: I started making significant profits through high-leverage futures trading, primarily on major altcoins with relatively high market caps and trading volumes, including XRP, DOGE, XLM, NEAR, FIL, and SUI.
2️⃣ Sep 19: While withdrawing some of my funds as usual, my withdrawals were suddenly restricted without warning.
LBank requested additional verification and identity checks, and I completed all the required procedures and waited for their response.
3️⃣ Sep 29: LBank restricted trading on my futures positions and demanded a much more detailed explanation from me.
4️⃣ Oct 14: After weeks of waiting, I received their final response:
“The relevant abnormal funds will not be released.”
5️⃣ Current status: Since I was unable to close my futures positions due to the trading restrictions, they were eventually all liquidated as prices fell. Meanwhile, approximately 1M USDT remains frozen in my spot account.
I repeatedly asked LBank to explain:
• Which specific orders were considered abnormal?
• Which trades allegedly constituted market manipulation?
• Which accounts was I supposedly linked to?
• Exactly how much of my funds were classified as abnormal?
• Which specific clauses of their Terms of Service were being applied?
They have provided none of these details.I was trading well-known assets such as NEAR, SUI, PEPE, BTC, FIL, LTC, SHIB, AVAX, ETH, and DOGE — not obscure, illiquid memecoins.
Yet my funds remain frozen without a clear explanation of what I allegedly did wrong.
Until this issue is resolved, I strongly urge everyone to reconsider using LBank.
If LBank continues to refuse to provide a transparent explanation or release my funds, I will continue raising awareness of this case within the Korean crypto community and bring it to the attention of relevant organizations, including Bithumb and DAXA.
I will keep pursuing this matter until I receive a fair resolution.
Users deserve transparency. Their funds should not be frozen without a clear and justified explanation.
@LBank_Exchange — I am still waiting for your response.
LBANK UID: LBA7H02780
For Korean (naver blog): https://t.co/HhLnZXj23n
— dlrrwad.edge???? (@solyfw34) November 10, 2026
The trader’s timeline says that the withdrawals have been discontinued since Sept. 19. LBank then asked to verify his ID and account, but he says that he filled those out as well.
On Sept. 29, the trader said futures trading was also restricted. This kept him from closing down jobs as they began to fall in price, according to him.
However, the user independently states that his spot account also has an amount of approximately 1 million USDT frozen and requests LBank to reveal exact trades, connected accounts and contractual clauses which underlie the reason.
Read More: Privacy Cash Freezes Deposits After $1.2M in Binance Hack Funds Hit Privacy Pools
LBank Says Account Review Is Ongoing
LBank said that unlike many other brokers, it doesn’t disqualify an account only for its profits. The exchange is currently in direct contact with the affected user and will share information it has with the user, while maintaining privacy. It also stated that it has also hired outside legal counsel with regards to any false or misleading statements.
The company threatened legal action over such accusations and urged the media and creators to confirm information before covering the incident.
The trader cannot agree with the description of the communication process by LBank, though, because he said he had already reached out to his account manager, their customer support, and the legal staff of the exchange prior to filing the dispute publicly.
ZachXBT Criticizes LBank’s Public Defense
Blockchain investigator ZachXBT also got in on the act, attacking some positive comments that came after LBank’s reply. He criticized the key Ops of the exchange for almost having the same messaging and called LBank an offshore centralized exchange that is unworthy to be engaged by serious traders.
@LBank_Exchange At least make it less obvious having your KOLs quote the post with the same script.
LBank is just another offshore bucket shop CEX no serious trader should ever touch. https://t.co/Qcfhns61tL
— ZachXBT (@zachxbt) November 10, 2026
The criticism now adds to the discussion but it still does not yield a definitive answer to the question of the moral permissibility of LBank’s account restrictions.
That is the crux of the matter: the trader argues his money was frozen for no good reason, and LBank states that the issue is being considered, but denies that profitable trading itself was the reason for restrictions.
Read More: Mercado Bitcoin Freezes Deposits and Withdrawals After $40M Crypto Security Alert
The post LBank Faces $1M USDT Freeze Dispute After Trader Claims Profits Triggered Restrictions appeared first on CryptoNinjas.
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