This is not STS fault.
If an item is untradable. The reward says, UNTRADEABLE. It is your fault for assuming it was not.
I understand your frustration. I ran for LB in Ursoth and got Nahash Banner but did not run this time as I knew the banner was tradeable. You can check this when u go click on the LB the classes and select a player either on top 5 or 25 or 50 and see what rewards are available.
Perhaps, your lack of research lead to this.
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