LBank Review | Is LBank Reliable? A Complete Analysis of Regulatory Vacuums, Withdrawal Barriers, and User Complaints

1. Brand Background and Development History

• Full company name : LBank Exchange (undisclosed unified registered entity)

• Founded : 2015

• Registered address : Officially claims to be operating in Hong Kong/UAE, but lacks clear legal registration documents

• Business coverage : more than 200 countries and regions, mainly concentrated in emerging markets in Asia and Africa

• Official website : https://www.lbank.com {:target="_blank" rel="nofollow"}

LBank calls itself "the world's leading digital asset trading platform," but its regulatory compliance has always been in doubt, especially as it lacks legal operating qualifications in mainstream jurisdictions such as Europe and the United States.

2. Trading Account and Trading Conditions

⚠️Risk Comment : Compared with regulated exchanges, LBank lacks a comprehensive fee disclosure mechanism, and the OTC sector has a higher risk of fraud.

III. Supervision and Compliance

📌 LBank claims to have "applied for licenses in multiple regions", but has not yet provided a verifiable regulatory number.
According to data from ForexEye and FX110 , LBank is labeled as an “unregulated high-risk exchange.”

IV. Trading Products and Market Coverage

• Spot trading : supports 400+ currencies, but many small currencies lack liquidity

• Contract trading : BTC, ETH, LTC and other mainstream hedging products, with leverage up to 125x

• Financial products : Pledge and lending products, with inflated annualized yields

• IEO listings : Some projects plummeted immediately after launch, leading users to question whether they were "scamming" (cheating).

⚠️ Users have reported that some new coin projects lack due diligence, experience short-term price fluctuations , and are suspected of market manipulation.

5. User Complaints and Withdrawal Barriers

1. Withdrawal not received

• Many users reported on Trustpilot that withdrawals were delayed by 3-10 days or even failed to arrive.

• Some complaints stated that the platform requested additional documents and remained unresolved.

2. Account Freeze

• Reddit users reported that their accounts were suddenly frozen, with the vague reason being "risk control review."

• Some users said their funds were frozen for more than 2 months.

3. Inefficient customer service

• Complaints generally indicate that customer service responses are slow and there are repeated excuses.

📌Real complaint case :

“LBank took my USDT deposit immediately, but when I tried to withdraw, they froze my account. Support keeps saying compliance review without giving any timeline.” (Trustpilot user, February 2025)

VI. Media and Third-Party Reviews

• FXEye : LBank is listed as a high-risk platform without a regulatory license.

• FX110 : Received over 100 complaints, most of which were related to withdrawal difficulties.

• Trustpilot : The overall rating is only 2.1/5, with over 60% being 1-star reviews.

• Twitter/X : The hashtag #LBankScam appeared, with users questioning the platform's credibility.

7. On-chain funds and security risks

• PeckShield Warning : In 2023, abnormally large transfers occurred in the LBank hot wallet, and some funds were suspected to flow to high-risk addresses.

• SlowMist Analysis : LBank lacks sufficient proof of reserves, and its capital pool is highly concentrated. If there is a large-scale withdrawal, there is a risk of a bank run.

8. Comparison with Compliant Exchanges

📌 Conclusion: LBank is significantly behind compliant exchanges, especially in terms of legal compliance and fund security .

IX. Lack of investor protection

• No investor compensation fund

• No independent arbitration mechanism

• No third-party audit report

• The only complaint channel is internal customer service, which lacks transparency

10. Risk Warning Conclusion

1. No regulatory protection : LBank lacks financial licenses from mainstream jurisdictions.

2. Withdrawal risks are serious : a large number of users have complained about frozen funds and delayed withdrawals.

3. Very bad reputation : Trustpilot and community platforms generally have negative reviews.

4. Hidden dangers of on-chain funds : There are large-scale abnormal transfers and a lack of transparent proof of reserves.

5. It is difficult for users to protect their rights : there is no compensation mechanism and no independent complaint channel.

⚠️Final Conclusion : LBank is a high-risk exchange . Investors are advised to avoid large or long-term capital operations on this platform to avoid irreparable losses.

📌Investor reminder : When choosing a trading platform, you should give priority to compliant exchanges that are subject to mainstream financial supervision , have transparent funds , and have smooth withdrawals, such as Coinbase, Kraken, Binance, etc.