Purpose and Scope

LBank is committed to maintaining a fair, transparent, and efficient market environment for all participants. As part of this commitment, LBank has implemented this Anti-Market Manipulation Policy (“Policy”) to comply with the regulatory requirements of the U.S. Securities and Exchange Commission (“SEC”), as well as other applicable laws and regulations, including the Securities Exchange Act of 1934 and related rules. This Policy applies to all users of LBank, including individuals, entities, and other market participants.

Prohibited Market Manipulation Behaviors

LBank strictly prohibits any form of market manipulation to ensure a fair, transparent, and efficient trading environment. The following behaviors are explicitly banned and apply to all users, including individuals, entities, and other market participants:

  1. Pump-like Behavior

Deliberately inflating the price of a cryptocurrency or digital asset by disseminating false or misleading information, creating artificial market surges. For example, spreading claims of “imminent price surges” to entice investors to buy, driving up prices, followed by selling at inflated levels for profit. This behavior undermines market fairness and may cause losses to other traders.

  1. Precision / Micro-price Exploitation


Exploiting minor price or calculation discrepancies in trading systems or matching mechanisms to gain abnormal profits through repetitive trading. For instance, leveraging system delays or specific matching rules to execute high-volume trades at minimal price differences, disrupting market fairness.

  1. Cross-account / Self-trading


Conducting trades between multiple accounts controlled by the same individual or entity to create false trading volume or price fluctuations. For example, buying with Account A and selling with Account B to simulate market activity without genuine ownership or risk transfer, misleading other investors.

  1. High-frequency Trading Patterns


Engaging in trading at an abnormally high frequency, exceeding typical individual or institutional activity, which disrupts market order. For instance, executing numerous buy and sell orders in a short period, causing short-term price volatility or distorted market signals.

  1. Spot / Futures Scalping Trading


Profiting from small price differences through frequent, rapid trading of assets within short timeframes. For example, exploiting short-term price fluctuations for quick profits. If abused, this practice increases market volatility and burdens trading systems, affecting market stability.

  1. Spot / Futures Depth Arbitrage


Capitalizing on imbalances in market order book depth through rapid, concentrated trades to generate profits. For example, placing large buy or sell orders when order book depth is uneven, leading to abnormal price fluctuations that harm market stability.

  1. Order Delay Exploitation (Black Box)

Manipulating or exploiting order delays, network latency, or system interface flaws to influence trade execution order or pricing for unfair advantages. For instance, using system delays to prioritize one’s orders over others, undermining fair trading principles.

  1. Coordinated Manipulation

Collaborative actions by multiple accounts to control trading volume or prices, influencing market trends. For example, a group of traders coordinating large trades to create false impressions of market activity or price movements, misleading other investors and compromising market transparency.

  1. Spoofing

Placing false buy or sell orders with no intention of execution to manipulate market prices, followed by canceling the orders before execution. This creates misleading market signals, distorts price trends, and deceives other traders’ investment decisions.

Monitoring and Detection

LBank employs a robust monitoring system to detect and identify potential market manipulation, including wash trading and other prohibited activities. Our surveillance system continuously monitors for suspicious trading patterns, such as:

  1. Circular transactions, where the same user or affiliated users are involved in both sides of a trade.

  2. Unusual trading volume or price fluctuations that suggest manipulation or deceptive trading practices.

  3. The creation of misleading market depth or price signals that distort genuine supply and demand.

Consequences of Violating the Policy

Any participant found to be involved in market manipulation or wash trading will face immediate and serious consequences, which may include:

  1. Suspension or termination of trading privileges on LBank.

  2. Reversal or nullification of trades involved in manipulative practices.

  3. Referral of the activity to relevant regulatory authorities, including the SEC, Commodity Futures Trading Commission (CFTC), or other law enforcement agencies for investigation and enforcement.

  4. Legal action, if warranted by the severity of the violation.LBank reserves the right to take additional actions, as necessary to protect the integrity of the platform and ensure compliance with applicable laws and regulations.

User Responsibility

All market participants are responsible for ensuring that their trading activity complies with this Policy and all applicable laws, regulations, and LBank rules. Users are prohibited from engaging in any manipulative practices, including but not limited to wash trading, spoofing, layering, pump and dump schemes, and dissemination of false information. Users are encouraged to report any suspicious activity or potential violations of this Policy to LBank. Reports will be treated confidentially and investigated promptly.

Continuous Improvement

LBank is committed to maintaining a secure, fair, and compliant trading environment. This Policy will be reviewed and updated regularly to align with evolving regulatory requirements and best practices in the industry. LBank reserves the right to amend this Policy at any time and will notify users of any significant changes.