Bank account is still frozen. But I knew that it will be the first thing they will do once the FIR is registered. So didn't kept much funds in it.

Bank investigation team met me and prepared a report. I explained complete story to them.
This is scary, who can we trust now! The shit has literally hit the fan!
Maybe we need to check if the name given by the owner of the account and LB profile match before accepting a transaction. Guess we can always refund the buyer his money if we think there is a fraud happening? This seems to be the only work around i can think of atm.