South Korean Trader Accuses LBank of Freezing Over $1 Million in Funds; Platform Denies 'Restricting Accounts Due to Profitability'

BlockBeats news, November 11 — South Korean trader @solyfw publicly accused crypto exchange LBank on platform X of freezing approximately $1 million of their funds and causing their futures positions to be forcibly liquidated. The user stated that the issue stemmed from their account being restricted after profiting from high-leverage futures trading, and that the platform has so far provided no specific explanation. LBank responded that it does not restrict accounts merely because users are profitable, that the relevant account is under review, and that it has engaged external legal counsel to address "false statements."

@solyfw stated that starting August 31, the user achieved significant profits through high-leverage futures trading of major altcoins (including highly liquid mainstream assets such as XRP, DOGE, XLM, NEAR, FIL, and SUI). On September 19, during a normal withdrawal, the account was suddenly restricted from withdrawing, and the platform required additional identity verification, which the user completed. On September 29, the platform further restricted their futures trading and demanded more detailed explanations. On October 14, the platform ultimately replied that "the relevant anomalous funds will not be released."

LBank officially responded the same day, stating: "We do not restrict accounts simply because someone is profitable. Trading and withdrawals are currently operating normally. We are communicating directly with this user regarding the account review and will share information to the extent possible while protecting their privacy." The platform also stated that it has engaged external legal counsel to take action against "false and misleading statements" and warned that it may take legal measures regarding the relevant remarks.