LS KBS Crypto Scam? Exchange Halts Withdrawals, Tells Members to Keep Quiet

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Withdrawals on the KBS Exchange platform have reportedly been frozen, leaving members — many recruited in Visayas and Mindanao through the LS Team network — unable to access their funds.

The investment scheme, which advertised returns of up to 100% in 45 days, is now facing growing public concern after users said the platform, which is not a licensed crypto exchange in the Philippines, stopped processing cash-outs for weeks.

Withdrawals on Hold

In a recent discussion on the Bacolod subreddit, it was highlighted how KBS Exchange received increased attention and reportedly recruited teachers:

The original post questioned the legitimacy of the operation and noted a rapid rise in new participants.
Commenters also expressed doubts about the platform, with several suggesting it may be an unregistered or fraudulent investment scheme.

Around three months after the original post, the thread’s author shared an update: members can no longer withdraw their money.

According to messages circulating among participants, the group behind KBS Exchange claimed the platform is processing “relief fund” withdrawals and that frequent withdrawal attempts are creating delays.

Members are being advised to suspend non-essential withdrawals with the group citing ongoing audits, a large number of supposed beneficiaries, and the need to “protect cash flow.”
The internal messages also warned that continued withdrawal attempts could push users into the “last audit batch,” further delaying their access to funds.

LS Team Urges Members to Avoid Online Criticism

Internal messages from an LS Team group chat showed mentors instructing members not to post negative comments.

In one screenshot, a mentor identified as LS_Mentor Alice reminded members not to “slander each other or harbor suspicions,” saying the instruction is meant to protect the “reputation and dignity of all LS teams.”

She urged members to remain “rational” and avoid public expressions of doubt.

A follow-up message warned that online remarks could “create difficulties in other people’s lives” and advised members to be careful about what they post. The mentor framed the group’s activities as humanitarian and encouraged members to “work together to provide help for humanitarian causes.”

Photo for the Article - LS KBS Crypto Scam? Exchange Halts Withdrawals, Tells Members to Keep Quiet — LS Team group chat conversation posted on Facebook

Is It a Scam?

In a Facebook post, fraud analyst Jonel Nillas Niñel said LS KBS crypto trading exhibited multiple signs of a Ponzi scheme and is “at serious risk of sudden collapse.”

According to Niñel, payouts appeared to rely heavily on money from new recruits rather than genuine trading activity. This is a hallmark of Ponzi operations.

He also noted that promised returns, including 1% daily, are mathematically unsustainable.

“LS KBS crypto trading is a scam and at serious risk of sudden collapse. If you have money invested, or know anyone who does, the advice is clear: withdraw your funds immediately or as soon as possible. Some scams like this can shut down overnight—and expected to fall within five- six weeks or less—leaving everyone’s assets gone and unreachable.”

Jonel Nillas Niñel, Fraud Analyst

Is This The Final Stage of the Scam?

In addition, several reports from investors said that there is a requirement to pay ‘humanitarian fees’ or ‘taxes’ to withdraw funds. Analysts noted that the requirement is consistent with the final stages of a ‘Pig Butchering’ fraud scheme.

They also warned that at this stage, the money may be unrecoverable, as the request for more funds is typically an attempt to squeeze the last remaining capital from victims.

Worth Reading: Be Alert: Types of Crypto Scams and How to Avoid Them

LS Team’s PH Offices

According to the post from LS Team members, they operated four offices in Bacolod City, including the Judah Team Office, stores on Estefania Avenue and Hernaiz Street, and Ms. Stella’s Office on Losin-Burgos Street.

In an album from an “LS Team International” page, the group also operated offices in Lapu-Lapu City, Talisay City, Iloilo City, Cebu City, and the Sibugaynon Peninsula. On the other hand, the Facebook page indicated on the LS Team website is currently unavailable.

LS Team x KBS Exchange Operations

Information gathered from users indicated that the operation involves two interconnected groups:

KBS Exchange, the trading platform where funds are deposited
LS Team, the recruitment network that brings in new members and distributes trading instructions

Members said they received compensation from KBS based on the volume of new recruits and trading activity they generate. This is a structure that strongly resembles referral-driven investment schemes.

Participants claimed they can withdraw monthly, but only after paying service charges and allocating a portion of their withdrawal to a so-called “humanitarian” contribution, a condition not found in legitimate financial platforms.

LS Team tutorials instruct recruits to:

Sign up using a referral link
Deposit at least $100 USDT
Transfer funds
Join the LS Team group on Bonchat for trading signals
Execute trades on KBS based on instructions from LS Team “analysts”

LS Team representatives reportedly tell members that their revenue comes from these withdrawal fees and from compensation provided by KBS for continued recruitment. The arrangement places heavy emphasis on expanding the user base, with earnings for participants tied to sustained activity and the flow of new members into the system.

What is KBS Exchange?

On its website, KBS Exchange presents itself as a global digital asset trading platform offering crypto swaps, short-term futures, options products, and access to new token launches. The platform markets its services as “fast, convenient, and beginner-friendly,” highlighting tools such as quick conversions, short settlement trading, and options-based prediction features.

The company says it was established in 2015 and caters to global crypto users through a high-performance trading engine and a range of mainstream digital assets such as Bitcoin and Ethereum.

Public Domain Registration Data Contradiction

However, the public domain registration data for KBS Exchange’s four websites directly contradicts their claim of being established in 2015 (a decade-long history). The registration dates show that these domains were only created much more recently, between August 2024 and February 2025.

What is LS Team?

LS Investment Co. Ltd describes itself as a global investment management firm involved in equities, financial markets, future, and cryptocurrencies. The group positions itself as a provider of long-term, stable returns supported by professional advisory services, personalized portfolio planning. and 24/7 client assistance.

It also emphasizes ESG-aligned investing and claims to support education, environmental projects, and charitable initiatives as part of its corporate responsibility efforts.

In October, according to LS Team’s press release published in Manila Times, it launched a humanitarian relief effort providing food, medical aid, and financial support to affected families. The team distributed essential supplies, set up community kitchens and temporary medical centers, and coordinated logistics with local volunteers to ensure efficient delivery.

Are Their Operations in the Philippines Legal?

Philippine Registration

As a platform that solicits funds and provides access to crypto-asset trading, KBS Exchange is required to secure two distinct licenses from Philippine regulators to operate legally: registration with the Securities and Exchange Commission (SEC) as a Crypto-Asset Service Provider (CASP) and authorization from the Bangko Sentral ng Pilipinas (BSP) as a Virtual Asset Service Provider (VASP).

U.S. Registration

KBS Exchange claims to hold a U.S. Money Services Business (MSB) registration, which it describes as evidence of compliance and credibility. However, foreign documentation does not confer legal operating status in the Philippines.

It is registered in the U.S. State of Colorado as a Nonprofit Corporation. This non-profit designation is incompatible with its primary activity of running a commercial trading platform that solicits investments with guaranteed high returns.
- Scam-watch analysts note that Colorado’s automated “Trade Name” registration system has become a common loophole exploited by fraud operators.
- The system allows anyone to generate an official-looking state document online within minutes for a $25 fee, with no ID verification or background checks. Experts warn that this type of filing is frequently misrepresented as a business license even though it offers no legal authority to manage financial securities or investment activities.
KBS Exchange also boasts an MSB registration from the U.S. Financial Crimes Enforcement Network; it explicitly states that this is for anti-money laundering compliance and does not serve as a recommendation, certification, or endorsement of legitimacy by any government body.
- The document also clearly indicates that, “The inclusion of a business on the MSB Registrant Search Web page is not a recommendation, certification of legitimacy, or endorsement of the business by any government agency.”

Moreover, this U.S. registration does not waive the licensing requirements of the Philippine SEC and BSP.

This article is published on BitPinas: LS KBS Crypto Scam? Exchange Halts Withdrawals, Tells Members to Keep Quiet

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