LBank disputes trader’s claim over $1M USDT freeze

The trader, posting as @solyflw34, said he began profitable, high-leverage futures trading on Aug. 31, including in XRP, DOGE, XLM, NEAR, FIL and SUI. He said withdrawals were restricted on Sept. 19 as he tried to move part of his funds. LBank requested additional verification and identity checks, which he said he completed.

According to his timeline, the exchange restricted futures trading on Sept. 29 and asked for a more detailed account of his activity. He said he could no longer manage or close open positions, which were later liquidated as prices fell. He distinguishes those losses from the approximately 1 million USDT he says remains in his spot account and wants released.

A response dated Oct. 14, shown in a screenshot he posted, said “the relevant abnormal funds will not be released.” The trader said he repeatedly asked which orders or accounts were at issue, what activity was considered manipulation and how much money had been classified as abnormal, but received no detailed answers.

A message attributed to LBank’s Risk Control Team cited virtual environments, device-modification tools, abnormal device fingerprints and emulator-related features. It said the findings suggested multiple accounts under coordinated control, and separately raised concerns about suspiciously timed trades and possible manipulation or insider trading. The message cited the user agreement but, as reproduced, did not specify the orders, accounts or clauses behind the decision. The trader rejected the allegations and posted trading-history screenshots and supporting files, saying his activity was legitimate.

In a Nov. 10 post on X, LBank said trading and withdrawals were operating normally and that it was working directly with the user while protecting his privacy. The exchange said profits alone do not prompt restrictions. It also said it had retained outside legal counsel to address statements it considered false or misleading, and warned that defamatory claims could lead to legal action.

The trader said private efforts through his account manager and customer support had produced no meaningful response. He said he sent the exchange’s legal team a formal notice and allowed seven days for a reply before going public. He also said he would raise the matter with Bithumb and the Digital Asset eXchange Alliance (DAXA).

Blockchain investigator ZachXBT criticized favorable posts about LBank, saying key opinion leaders were quoting the exchange with “the same script.” The posts in his screenshot praised the company’s communication and handling of issues; some accounts referred to working with LBank.