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At least 40 LBank users have reported frozen accounts in 2025 after making profitable trades on meme tokens, with locked funds ranging from $350 to $10,000, according to complaints compiled by blockchain investigators.
The exchange has cited incomplete KYC verification and geographic restrictions as reasons for the freezes, but affected traders say their accounts were locked immediately after withdrawing profits—leading some crypto analysts to accuse the platform of deliberately targeting winning traders.
Around 40 complaints have been raised by LBank users this year, with locked sums ranging from $350 to $10,000.
“Some accounts were frozen for reasons including incomplete KYC and travel restrictions,” reports an industry watchdog.
Notably, around 40% of cases cited geographic and travel rules as causes for account blocks. An analyst said,
The random restrictions suggest LBank may be struggling with liquidity or unable to properly account for user funds.
Traders have also criticized LBank’s customer service for being unresponsive and at times deliberately elusive in resolving these freezes.
Crypto investigator ZachXBT highlighted that the problem extends beyond LBank, with other platforms like MEXC and Ourbit also facing backlash for freezing user accounts.
“These ‘bucket shop’ exchanges inherently pose risks and often target profitable traders,” he said.
MEXC, after months of pressure, including from notable trader The White Whale, began batch unlocking funds, showing the impact of user advocacy.
The case of LBank reflects the dangers traders face when handling popular meme tokens on exchanges with unclear regulatory frameworks. “Even some prominent crypto influencers have reported being locked out of their funds,” noted a blockchain expert.
LBank has attributed many freezes to incomplete identity verification, payment disputes, or triggered internal risk controls. However, the opaque enforcement of rules and the freezing of accounts following meme token rallies have caused widespread confusion.
As one user shared, “After a 10X gain on a meme token, my funds were frozen with no clear way to appeal.”
LBank maintains it complies with regulatory and judicial requirements, but critics argue the approach lacks transparency.
The frozen funds controversy underscores the precarious nature of trading on smaller centralized exchanges, raising warnings for traders about risks despite the allure of quick profits.
