> step 1: $ lftp
> step 2: Password: foobar\n
> step 3: lftp ... :~> ls
> `ls' at 0 [Making data connection...]

This looks like what happens when you're trying to use ftp over ssl, but your
firewall blocks it.  E.g. if your firewall allows ftp control connections, and
uses nf_conntrack_ftp to detect and allow related ftp data connections, then
data connections will fail with ftp over ssl because nf_conntrack_ftp can't
observe the traffic to see which port it needs to open.

Try running

set ftp:ssl-allow 0

and try your connection again.

Good luck,
Andrew.

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