Korean traders accuse LBank of freezing approximately 1000000 USD in funds; the platform denies restricting accounts due to profitability.

AT A GLANCE

A trader accused LBank of freezing approximately 1000000 USD and causing forced liquidation; the platform denies restricting the account due to profitability, and the dispute remains to be verified.

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Korean Trader Accuses LBank of Freezing Over 1000000 USD in Funds, Platform Denies "Restricting Accounts for Profits"

BlockBeats News, November 11, Korean trader @solyfw publicly accused crypto exchange LBank on the X platform of freezing approximately 1000000 USD of their funds, which led to their futures positions being forcibly liquidated. The user stated that the issue originated from their account being restricted after profitable high-leverage futures trading, and the platform has yet to provide a specific explanation. LBank responded that it does not restrict accounts 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 from August 31, the user had earned significant profits through high-leverage futures trading on major altcoins (including XRP, DOGE, XLM, NEAR, FIL, SUI, and other highly liquid mainstream assets). On September 19, during a normal withdrawal, the account was suddenly restricted from withdrawals, and the platform requested additional identity verification, which the user completed. On September 29, the platform further restricted their futures trading and requested more detailed explanations. On October 14, the platform finally replied that "the relevant abnormal funds will not be released."

LBank officially responded on the same day: "We do not restrict accounts simply because someone is profitable. Trading and withdrawals are currently operating normally. We are directly communicating with the user regarding the account review and will share as much information as 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 against the relevant remarks.

Original link https://m.theblockbeats.info/flash/376704

Key points

According to BlockBeats, Korean trader @solyfw publicly accused LBank on X on November 11 of freezing approximately 1000000 USD of their funds and causing their futures position to be forcibly liquidated.
@solyfw stated that they achieved significant profits through high-leverage futures trading starting August 31, but were restricted from withdrawing funds on September 19 despite having completed the required supplementary identity verification.
@solyfw stated that on September 29 the platform further restricted its futures trading, and on October 14 replied that "the relevant abnormal funds will not be released."
LBank responded that it would not restrict an account solely because a user is profitable, stated that it is communicating with the user regarding the account review, and noted that trading and withdrawals are currently operating normally.
LBank stated that it has engaged external legal counsel to take action regarding what it describes as "false and misleading statements," and warned that legal measures may be taken.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

This is a dispute regarding account funds and trading restrictions. The trader claims that the restrictions were imposed after profitable high-leverage trades and alleges that the restrictions forced the liquidation of positions; LBank denies restricting the account solely due to profits, stating that the account is under review. The report provides statements from both parties but does not provide independent evidence sufficient to confirm the reason for the restrictions, the amount of funds involved, or the circumstances of the liquidation.

Why it matters to readers

The dispute involves whether users can withdraw funds, whether they can continue to manage their futures positions, and the basis on which the platform restricts accounts; the outcomes of these issues remain to be clarified.

A distinction should be made between trader accusations and platform responses: at present, it cannot be determined that LBank froze funds because a user was profitable, nor can the platform's claim that trading and withdrawals are normal be taken as evidence that the account dispute has been resolved.

Risks and unknowns

The exact amount of frozen funds, the course of the futures liquidation, and their relationship to the account restrictions have not been independently verified.
The specific basis for the account review and the criteria used by the platform to determine the so-called "abnormal funds" have not been disclosed.
Whether the funds have been released, whether the account restrictions have been lifted, and the final outcome of the dispute remain unclear.

Korean traders accuse LBank of freezing approximately 1000000 USD in funds; the platform denies restricting accounts due to profitability.

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