LBank customers have issued complaints about having their funds frozen. Even after profitable buying and selling, some customers couldn’t entry their beneficial properties, because the alternate reportedly refused to launch the funds.
A number of high-profile crypto influencers have complained about LBank locking up their beneficial properties. The stories declare that even after profitable buying and selling, the centralized alternate refused to honor their withdrawal claims.
Crypto investigator ZachXBT famous that one of many huge shareholders of LBank can also be behind the MEXC market. MEXC has additionally obtained related complaints and was locked in a months-long battle with dealer The White Whale.
ZachXBT famous centralized “bucket store” exchanges have been inherently dangerous, however they moreover focused worthwhile merchants.
Allegedly one of many bigger shareholders for LBank additionally owns MEXC / WEEX
Loads of these sketchy bucket store exchanges have a “huge boss” behind the scenes who runs all of it
Buying and selling towards customers and freezing worthwhile merchants appears to be part of their enterprise technique
— ZachXBT (@zachxbt) November 5, 2025
LBank carried among the hottest meme tokens, permitting some merchants to make fast beneficial properties. Nevertheless, even distinguished influencers have been unable to say their earnings.
LBank flags accounts for breaking buying and selling guidelines
One of many merchants, Param, was unable to withdraw beneficial properties from PNUT, a token that achieved file buying and selling and publicity in 2024.
I need assistance from the Web3 neighborhood….
🚨 LBANK FROZEN MY FUNDS in 6 figures
Please assist everybody with this put up so I can get justice.
THIS IS NOT AN ENGAGEMENT FARMING POST
I by no means posted something like earlier than
The Lbank crew can DM me and ask for my UID.
I didn’t need to… pic.twitter.com/g3H539Wluu
— Param (@Param_eth) November 4, 2025
The issue might not be restricted to LBank, showing to be a problem affecting smaller exchanges working beneath opaque licenses.
A number of the centralized exchanges flagged the accounts of essentially the most profitable merchants for breaking obscure buying and selling guidelines. Merchants are then pressed to show innocence and defend their outsized beneficial properties, which have been usually because of meme token rallies.
In crypto phrases, a 10X acquire is taken into account routine, however LBank froze funds when merchants tried to take earnings after such trades. The alternate has a number of guidelines on bot utilization, however there are additionally stories of accounts frozen for months with no recourse.
Beforehand, merchants have misplaced funds to dangerous or obscure exchanges. Nevertheless, LBank has some licensing rights within the USA and is instrumental within the newest traits for meme tokens and different launches.
In some situations, centralized markets are the one buying and selling possibility for decent belongings, exposing much more merchants to those arbitrary account freezes and sanctions.
LBank locked accounts even after modest beneficial properties
LBank customers have posted round 40 complaints in 2025, although there could also be a wider pool of customers affected. A number of the accounts have modest beneficial properties, locking sums of between $350 and $10,000 per case.
LBank cited incomplete KYC, and in 40% of the circumstances, accounts have been frozen because of journey and site guidelines. Nevertheless, among the freezes adopted particular crypto occasions, together with the current xUSD de-pegging.
The random utility of restrictions led some analysts to consider LBank could also be attempting to resolve its liquidity points or is unable to account for consumer funds. Over time, merchants additionally complained of unresponsive customer support or deliberate makes an attempt to keep away from contact and reinstate accounts.
The issue with frozen funds might not be restricted to LBank, as seen within the current complaints about MEXC. Generally, centralized exchanges are seen as a possible threat. Just lately, the Ourbit alternate additionally went viral after consumer stories of restricted funds and frozen accounts.
Earlier consumer complaints led MEXC to rethink its freeze coverage. The White Whale was among the many leaders in making claims towards MEXC, lastly receiving his funds on October 31.
MEXC additionally went by batch unlocks, exhibiting how consumer strain led to an overhaul of the alternate’s requirements.
