LBank weighed down by wave of complaints about freezing user funds

LBank users have complained about their funds being frozen. Even after a successful trade, some users were reportedly unable to access their profits as the exchange refused to release the funds.

Several prominent crypto influencers have complained about LBank locking in profits. The report said that even after the transaction was successful, the central exchange refused to honor their withdrawal requests.

Cryptocurrency researcher ZachXBT pointed out that one of LBank’s major shareholders is also involved in the MEXC market. MEXC has received similar complaints and is embroiled in a months-long dispute with trader The White Whale.

ZachXBT pointed out that centralized “bucket shop” exchanges are inherently risky, but also target traders who are making more profits.

One of LBank’s major shareholders is said to also own MEXC/WEEX

Many of these sketchy bucket shop exchanges have a “big boss” who runs everything behind the scenes.

Freezing traders who trade against users and make profits seems to be part of their business strategy

— ZachXBT (@zachxbt) November 5, 2025

LBank holds some of the most popular meme tokens, allowing some traders to make quick profits. However, even famous influencers could not claim their earnings.

LBank flags accounts that violate trading rules

One of the traders, Mr. Param, was unable to withdraw profits from PNUT, a token that achieved record trading and exposure in 2024.

We need help from the Web3 community….

🚨 LBANK froze my funds in 6 figures

Please help me with this post so I can get justice.

This is not an engagement farming post

I didn’t post anything like before

Lbank team can DM me and ask for my UID.

I didn’t want to… pic.twitter.com/g3H539Wluu

— Param (@Param_eth) November 4, 2025

This issue may not be limited to LBank, and appears to be an issue affecting smaller exchanges operating under opaque licenses.

Some centralized exchanges flagged the accounts of their most successful traders for breaking vague trading rules. The traders are then forced to prove their innocence and defend their huge profits from the meme token rally.

In cryptocurrency terms, 10x profits are considered routine, but if a trader tried to profit after such a trade, LBank froze the funds. The exchange has multiple rules regarding the use of bots, but there are reports of accounts being frozen for months without any redress.

In the past, traders lost money to risky or obscure exchanges. However, LBank has some licensing rights in the US and is contributing to the latest trends in meme tokens and other launches.

In some cases, concentrated markets become the only trading option for popular assets, leaving even more traders exposed to these arbitrary account freezes and sanctions.

LBank locked accounts even after small profits

LBank users posted approximately 40 complaints in 2025, but the number of affected users is likely to be much wider. Some accounts make a small profit, locking in amounts ranging from $350 to $10,000 each.

LBank cited incomplete KYC and said that in 40% of cases, accounts were frozen due to travel or location regulations. However, some of the freezes followed specific cryptocurrency events, such as the recent xUSD depegging.

The random application of the restrictions has led some analysts to believe LBank may be trying to resolve liquidity issues or may not be able to manage your funds. Over time, traders began to complain about customer service becoming unresponsive or deliberately avoiding contact when attempting to reinstate their accounts.

The issue of frozen funds may not be limited to LBank, as seen in recent complaints against MEXC. In general, centralized exchanges are considered a potential risk. Recently, Ourbit exchange also spread rapidly After users report fund restrictions or account freezes.

Due to complaints from previous users, MEXC has reconsidered its freeze policy. The White Whale was one of the leaders of the claim against MEXC and ultimately received his orders. funds October 31st.

MEXC also conducted a batch unlock, demonstrating how user pressure led to a review of exchange standards.