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 alternate refused to launch the funds.
A number of distinguished crypto influencers have complained about LBank locking in earnings. The report stated that even after the transaction was profitable, the central alternate refused to honor their withdrawal requests.
Cryptocurrency researcher ZachXBT identified that one in all LBank's main shareholders can also be concerned within the MEXC market. MEXC has obtained related 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 in addition goal merchants who’re making extra earnings.
Certainly one of LBank’s main shareholders is alleged to additionally personal MEXC/WEEX
Many of those sketchy bucket store exchanges have a “huge 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 among the hottest meme tokens, permitting some merchants to make fast earnings. Nonetheless, 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 report buying and selling and publicity in 2024.
We want assist from the Web3 neighborhood….
🚨 LBANK froze my funds in 6 figures
Please assist me with this put up so I can get justice.
This isn’t an engagement farming put up
I didn't put up something like earlier than
Lbank workforce can DM me and ask for my UID.
I didn't need to… pic.twitter.com/g3H539Wluu
— Param (@Param_eth) November 4, 2025
This difficulty is probably not 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 imprecise buying and selling guidelines. The merchants are then pressured to show their innocence and defend their enormous earnings from the meme token rally.
In cryptocurrency phrases, 10x earnings are thought-about routine, but when a dealer tried to revenue after such a commerce, LBank froze the funds. The alternate has a number of guidelines relating to the usage of bots, however there are reviews of accounts being frozen for months with none redress.
Previously, merchants misplaced cash to dangerous or obscure exchanges. Nonetheless, LBank has some licensing rights within the US and is contributing to the most recent developments in meme tokens and different launches.
In some instances, concentrated markets turn into the one buying and selling possibility for fashionable belongings, leaving much more merchants uncovered to those arbitrary account freezes and sanctions.
LBank locked accounts even after small earnings
LBank customers posted roughly 40 complaints in 2025, however the variety of affected customers is prone 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 stated that in 40% of instances, accounts had been frozen attributable to journey or location laws. Nonetheless, among the freezes adopted particular cryptocurrency occasions, such because the latest xUSD depegging.
The random software of the restrictions has led some analysts to imagine LBank could also be attempting to resolve liquidity points or could not be capable of handle your funds. Over time, merchants started to complain about customer support changing into unresponsive or intentionally avoiding contact when trying to reinstate their accounts.
The problem of frozen funds is probably not restricted to LBank, as seen in latest complaints in opposition to MEXC. Generally, centralized exchanges are thought-about a possible danger. Lately, Ourbit alternate additionally unfold quickly After customers report fund restrictions or account freezes.
Attributable to 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 finally obtained his orders. funds October thirty first.
MEXC additionally carried out a batch unlock, demonstrating how consumer stress led to a assessment of alternate requirements.
