South Korean trader accuses LBank of freezing over $1 million in funds; platform denies “restricting accounts due to profits”

On November 11, Korean trader @solyfw posted on X accusing crypto exchange LBank of unilaterally freezing approximately $1 million in their assets—triggering forced liquidation of their futures positions. According to the user, the account restriction originated after they generated substantial profits using high-leverage trading on major altcoins—including highly liquid assets such as XRP, DOGE, XLM, NEAR, FIL, and SUI. They stated they had consistently profited from this strategy since August 31. On September 19, their first withdrawal attempt was blocked, with LBank citing incomplete identity verification; the user promptly completed all required KYC steps. On September 29, LBank further restricted futures trading access and requested additional explanatory documentation. By October 14, LBank formally notified the user that “the relevant anomalous funds would not be released.”

In its official response the same day, LBank emphasized: “We never restrict accounts solely because users are profitable,” and affirmed that all trading and withdrawal services remain fully operational. The exchange confirmed the account is currently under internal review and that it is engaging directly with the user—disclosing information to the fullest extent possible while safeguarding privacy. Additionally, LBank has engaged external legal counsel to pursue legal action against the user’s “false and misleading statements,” warning of potential further legal measures.