Trader Param accuses LBank of freezing $200K profits as ZachXBT links the exchange to a wider “bucket shop” network.
Author: Tanishq Bodh
November 5, 2025 – The crypto community is in uproar after trader Param publicly accused LBank, a Hong Kong–based exchange, of freezing six-figure profits from a meme coin trade sparking a viral backlash amplified by on-chain sleuth ZachXBT. What began as a $20,000 trade on $PNUT has escalated into a 10-month standoff involving alleged bribe requests, withheld withdrawals, and growing calls for accountability.
Param, a smart contract developer and zkPass contributor, claims he deposited $20,000 on LBank in January 2025 to long the Solana-based $PNUT token. After Elon Musk’s tweets sent $PNUT soaring from a $200M to $2B market cap, his position ballooned to $200,000 in profit which LBank then froze, citing “abnormal trading.”
Param alleges the exchange later demanded a $100K bribe to unlock funds. His November 4 post on X drew good attention.
LBank has remained silent, closing DMs and support channels. Critics note its Terms of Service allow freezes for “abnormal” trades without notice a loophole they claim targets winners while ignoring losses.
Image Source : @Param_eth on X.
Renowned investigator ZachXBT (@zachxbt) entered the conversation early Wednesday, alleging that LBank’s major shareholder also controls MEXC and WEEX, describing them as a cluster of “bucket shop exchanges” that trade against users and freeze profitable accounts.
ZachXBT also questioned enforcement feasibility:
“How do you hold an offshore exchange legally accountable when ownership is hidden behind shell entities?” he asked.
LBank, registered in the British Virgin Islands, has long faced scrutiny for opaque corporate structures and limited regulatory oversight.
Param thanked ZachXBT publicly, noting that his involvement “might finally pressure LBank to respond.”
Crypto X has since flooded the thread with #JusticeForParam, tagging global regulators and major CEXs.
LBank, ranked 22nd globally by volume, offers 800+ tokens and low fees but holds a 2.5/5 Trustpilot rating amid a history of complaints.
Past controversies include:
Community members now label LBank part of a tier-3 CEX cartel, where profits trigger suspensions instead of payouts.
Analyst @Crypto1nsight summarized the sentiment: “If this isn’t resolved, retail trust in CEXs will crumble.”
No official statement has been issued by LBank at publication time. Observers note that similar public campaigns have forced partial reimbursements in previous ZachXBT cases, such as Bybit and Bitget, raising hopes for resolution.
Still, the episode underscores a recurring lesson: “Not your keys, not your crypto.” As one user wrote, “Param’s fight is every trader’s warning.”
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