Cryptocurrency exchange LBank is facing a public dispute with a South Korean trader who alleges the platform froze approximately 1 million USDT — the dollar-pegged stablecoin issued by Tether — in his account and restricted his futures trading after he accumulated significant profits. The exchange rejects that characterization, stating that accounts are never restricted merely for being profitable and that a review of the account is ongoing. The clash unfolded publicly on X on November 10, 2026, and drew criticism from blockchain investigator ZachXBT, who accused the exchange of coordinating supportive influencer posts. The standoff taps into a recurring friction point for centralized-exchange users: platform terms of service generally give exchanges broad discretion to review and restrict accounts, and users who contest a freeze typically have visibility only into what the exchange chooses to disclose.

LBank Denies Profit-Based Restrictions

LBank addressed the allegations in a post on X, saying it does not restrict accounts simply because a user makes a profit, that trading and withdrawals are running normally, and that it is working directly with the user on an account review while protecting his privacy. The exchange said it will defend itself against false claims, has engaged external legal counsel to address false and misleading statements about the matter, and warned that anyone who publishes or disseminates false and defamatory statements may face legal action. It also urged media and creators covering the story to check facts and correct inaccuracies, and noted that nearly 100,000 users trade futures on LBank every day.

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

The user behind the allegations, whose X handle is @solyfw34, says the conflict began after he pursued high-leverage futures trading on major cryptocurrencies with relatively high market caps and trading volumes, including XRP, DOGE, XLM, NEAR, FIL, and SUI. High-leverage trading lets traders control positions many times the size of their deposited collateral, amplifying both potential gains and losses. In a detailed post on X, he laid out a timeline of the dispute and urged others to avoid the exchange until the matter is resolved:

🚨 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):

— dlrrwad.edge🦭 (@solyfw34) November 10, 2026

According to the timeline, withdrawals were first restricted without warning on September 19, while the trader was withdrawing funds as usual. LBank requested additional verification and identity checks, which he says he completed while awaiting a response. On September 29, trading on his futures positions was restricted as well, which he says prevented him from closing them as prices fell; the positions were eventually liquidated — the automatic force-closing of leveraged positions that occurs when margin requirements are no longer met. On October 14, after weeks of waiting, he says he received the exchange's final response: "The relevant abnormal funds will not be released." Approximately 1 million USDT remains frozen in his spot account, according to the trader. Verification requests and account reviews are standard compliance tools at centralized exchanges, which typically reserve discretion under their terms of service to restrict accounts pending checks.

He says he repeatedly asked LBank to identify which orders were deemed abnormal, which trades allegedly constituted market manipulation, which accounts he was supposedly linked to, exactly how much of his money was classified as abnormal, and which clauses of the Terms of Service were being applied — and that the exchange provided none of those details. He noted that he traded well-known assets such as NEAR, SUI, PEPE, BTC, FIL, LTC, SHIB, AVAX, ETH, and DOGE rather than obscure, illiquid memecoins.

The trader publicized his LBank UID, LBA7H02780, and linked a Korean-language post on the Naver blog platform with further details. He also disputed LBank's characterization of the communication process, saying he had already contacted his account manager, the exchange's customer support, and its legal staff before taking the dispute public. If LBank continues to refuse a transparent explanation or the release of his funds, he said, he will keep raising awareness of the case within the Korean crypto community and bring it to the attention of relevant organizations, including Bithumb, one of South Korea's largest cryptocurrency exchanges, and DAXA, the Digital Asset Exchange Alliance, a coalition of the country's major trading platforms that coordinates industry self-regulation.

ZachXBT Criticizes LBank's Public Defense

Blockchain investigator ZachXBT — known for on-chain investigations into hacks, scams, and fraud across the crypto industry — also joined the discussion, criticizing supportive replies that followed LBank's statement for using nearly identical messaging. He accused the exchange of having its key opinion leaders (KOLs) quote the post with the same script and described LBank as an offshore centralized exchange that serious traders should not touch:

@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.

— ZachXBT (@zachxbt) November 10, 2026

The dispute remains unresolved. The trader maintains his funds were frozen without a clear and justified explanation, while LBank says the issue is under review and denies that profitable trading itself triggered the restrictions. ZachXBT's criticism has added to the discussion but has not produced a definitive answer to the central question in the case. What happens next hinges on the outcome of LBank's account review and on whether the trader follows through with his plan to take the case to South Korean industry organizations.