LBank Dispute Centers on Trader’s Claim of About One Million Tether (USDT)

A Korean trader says LBank blocked access to about one million Tether (USDT) after profitable derivatives trades, while the exchange says the account was flagged for unusual activity.

The trader, using the handle @solyfw34, alleges LBank restricted withdrawals and trading after the trades produced profits. The trader says those restrictions prevented manual closure of some positions, which were later forcibly liquidated, and left about one million USDT inaccessible.

LBank said it does not restrict accounts solely because users are profitable. The exchange said unusual trading triggered its risk controls and that the trader used nearly 50 devices to trade through one account. LBank said it had additional details about the review but would not disclose all of them.

The exchange also said the account's deposits had been withdrawn in full before the trader spoke publicly. LBank said it hired a South Korean law firm to handle the dispute and would pursue legal action over statements it considers false and defamatory.