LBank customers have complained about their funds being frozen. Even after a profitable commerce, some customers had been reportedly unable to entry their earnings because the trade refused to launch the funds.
A number of outstanding crypto influencers have complained about LBank locking in earnings. The report mentioned that even after the transaction was profitable, the central trade refused to honor their withdrawal requests.
Cryptocurrency researcher ZachXBT identified that one in every of LBank’s main shareholders can be concerned within the MEXC market. MEXC has obtained comparable complaints and is embroiled in a months-long dispute with dealer The White Whale.
ZachXBT identified that centralized “bucket store” exchanges are inherently dangerous, but additionally goal merchants who’re making extra earnings.
Considered one of LBank’s main shareholders is claimed to additionally personal MEXC/WEEX
Many of those sketchy bucket store exchanges have a “massive boss” who runs every thing behind the scenes.
Freezing merchants who commerce in opposition to customers and make earnings appears to be a part of their enterprise technique
— ZachXBT (@zachxbt) November 5, 2025
LBank holds a few of the hottest meme tokens, permitting some merchants to make fast earnings. Nevertheless, even well-known influencers couldn’t declare their earnings.
LBank flags accounts that violate buying and selling guidelines
One of many merchants, Mr. Param, was unable to withdraw earnings from PNUT, a token that achieved file buying and selling and publicity in 2024.
We’d like assist from the Web3 group….
🚨 LBANK froze my funds in 6 figures
Please assist me with this publish so I can get justice.
This isn’t an engagement farming publish
I did not publish something like earlier than
Lbank crew can DM me and ask for my UID.
I did not need to… pic.twitter.com/g3H539Wluu
— Param (@Param_eth) November 4, 2025
This problem will not be restricted to LBank, and seems to be a problem affecting smaller exchanges working underneath opaque licenses.
Some centralized exchanges flagged the accounts of their most profitable merchants for breaking obscure buying and selling guidelines. The merchants are then pressured to show their innocence and defend their big earnings from the meme token rally.
In cryptocurrency phrases, 10x earnings are thought of routine, but when a dealer tried to revenue after such a commerce, LBank froze the funds. The trade has a number of guidelines concerning using bots, however there are experiences of accounts being frozen for months with none redress.
Previously, merchants misplaced cash to dangerous or obscure exchanges. Nevertheless, LBank has some licensing rights within the US and is contributing to the most recent tendencies in meme tokens and different launches.
In some instances, concentrated markets turn into the one buying and selling choice for fashionable property, leaving much more merchants uncovered to those arbitrary account freezes and sanctions.
LBank locked the account even after making a small revenue
LBank customers posted roughly 40 complaints in 2025, however the variety of affected customers is more likely to be a lot wider. Some accounts make a small revenue, locking in quantities starting from $350 to $10,000 every.
LBank cited incomplete KYC and mentioned that in 40% of instances, accounts had been frozen attributable to journey or location rules. Nevertheless, a few of the freezes adopted particular cryptocurrency occasions, such because the latest xUSD depegging.
The random software of the restrictions has led some analysts to consider LBank could also be making an attempt to resolve liquidity points or could not have the ability to handle your funds. Over time, merchants started to complain about customer support turning into unresponsive or intentionally avoiding contact when making an attempt to reinstate their accounts.
The difficulty of frozen funds will not be restricted to LBank, as seen in latest complaints in opposition to MEXC. Generally, centralized exchanges are thought of a possible danger. Lately, Ourbit trade additionally unfold quickly After customers report fund restrictions or account freezes.
Because of complaints from earlier customers, MEXC has reconsidered its freeze coverage. The White Whale was one of many leaders of the declare in opposition to MEXC and in the end obtained his orders. funds October thirty first.
MEXC additionally carried out a batch unlock, demonstrating how person strain led to a assessment of trade requirements.
