If you’re searching for “LBank scam,” you’ve likely heard the horror stories — users claiming frozen funds, unresponsive support, or delayed withdrawals that drag on for months. LBank, a global crypto exchange founded in 2015, has positioned itself as a platform for trading new and emerging tokens. But behind the glossy marketing lies a growing number of troubling user experiences.
This investigation aims to separate fact from fiction. Is LBank a legitimate but poorly managed exchange — or a scam you should avoid entirely? Let’s break down what we found.
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Table of Contents
What Is LBank? A Brief History
LBank is a centralized cryptocurrency exchange established in Hong Kong in 2015, later moving its operations to the British Virgin Islands. It offers trading for hundreds of altcoins, often listing lesser-known tokens early — a feature that attracts both traders and scammers alike.
The exchange promotes low fees and global accessibility but operates in a regulatory gray zone, with no clear licensing in major markets like the U.S., U.K., or the EU. This lack of regulation is one of the first red flags.
Investigating the “LBank Scam” Allegations: The Evidence
The Withdrawal Problem Epidemic
One of the most common complaints about LBank is inability to withdraw funds.
Users on Reddit and Trustpilot report scenarios where withdrawals are “under review” for weeks, or accounts are suddenly flagged for “security verification” without clear instructions to resolve the issue.
“They kept my $4,000 for 2 months, claiming I needed to re-verify my account. Every support reply was a copy-paste. Total scam.” — Trustpilot review, January 2025
This pattern of delayed or blocked withdrawals appears systemic, suggesting not isolated technical glitches but deeper operational issues.
The Ghosting Customer Service
Many users report that once they encounter a problem, LBank’s customer support disappears. Tickets often go unanswered for weeks, or receive generic AI-style replies.
On Reddit’s r/CryptoCurrency, one post gained traction in mid-2024 with over 500 upvotes titled “LBank stole my funds and won’t reply.” Dozens of commenters shared similar experiences.
When it comes to financial platforms, communication is trust — and LBank’s lack of it speaks volumes.
Hidden Fees and Opaque Charges
Although LBank advertises “low trading fees,” users frequently report unexpected charges or balance discrepancies.
Examples include:
- Withdrawal fees that change without notice
- Unexplained deductions labeled “network fee”
- Tokens missing after trading pairs are delisted
Transparency is a cornerstone of legitimate exchanges — and LBank’s fee structure is alarmingly opaque.
User Review Aggregation: Trustpilot, Reddit, and SiteJabber
Across major review sites, LBank’s reputation is consistently negative.
- Trustpilot: Out of 1,200 reviews, over 75% are 1-star.
- SiteJabber: Users highlight “frozen withdrawals” and “scam behavior.”
- Reddit: Multiple threads flag LBank as a “high-risk” exchange with suspicious activity.
A few users report smooth trading experiences, but these are overwhelmingly outweighed by complaints of withdrawal issues and lack of transparency.
Regulatory and Legal Red Flags
LBank has no clear operating license in major jurisdictions. There are no official listings with the U.S. FinCEN, the UK FCA, or the Monetary Authority of Singapore.
In early 2024, several users claimed to have filed complaints with regulatory agencies after losing access to funds. No formal lawsuits have been confirmed, but the growing number of user reports has attracted scrutiny.
The exchange’s offshore registration further complicates recovery options for defrauded users.
The Other Side: Is There Any Legitimacy to LBank?
To remain balanced, it’s worth noting that LBank is still operating and processes millions in daily trading volume. Some traders report successful withdrawals and find the platform useful for accessing small-cap tokens not listed elsewhere.
LBank also maintains a mobile app and staking features, suggesting an active development team. However, longevity alone doesn’t equal legitimacy — even Ponzi schemes can operate for years before collapsing.
LBank Alternatives: Safer Exchanges to Consider
If you’re looking for reliable exchanges with transparent regulations and stronger user protection, consider:
- Binance – Global exchange with strong liquidity (note: some regional restrictions).
- Kraken – Fully regulated in the U.S. and Europe, known for top-tier security.
- Coinbase – Publicly listed company, ideal for beginners and compliance-conscious traders.
- OKX – Offers a wide selection of coins with better customer support ratings.
These exchanges are audited, licensed, and far more transparent than LBank.
Final Verdict: Is LBank a Scam?
While LBank is not a confirmed “exit scam” — it’s not vanishing overnight with user funds — the pattern of withdrawal issues, hidden fees, and ghosted support is too consistent to ignore.
The platform operates with minimal regulation, poor accountability, and high risk for users.
Verdict: LBank should be considered a high-risk exchange. Traders are strongly advised to use regulated platforms instead, and never store significant funds on LBank.
Until LBank addresses its withdrawal transparency and compliance standards, the evidence suggests that it is not a trustworthy exchange for serious crypto investors.
Key Takeaways
Still operational but unregulated and unreliable
Widespread reports of frozen withdrawals and ignored support
Hidden fees and misleading terms are common
High risk — better alternatives available
