Disclaimer: I do not work for livecoin - I don't even have a current account there.Let's examine what's been said:
If we send all our news to all our customers, our mail servers would be overloaded and blocked in no time, and nobody would receive any newsletters from us at all.
This is utter nonsense. Unless the people behind the website are totally incompetent, which is clearly a possibility (and if true you should withdraw your funds anyway). Sending a large volume of email does not mean you will be blocked, that is simply a lie. Stating that your servers would get overloaded is a clear sign that you don't understand the basic technology; just add more servers. In addition, no-one expects you to send all news to all customers (unless they opt in to that). But if a customer has traded a coin that is being delisted, or holds a coin that is being delisted, then of course they should be sent a mail about that. And after it is delisted, there is no reason to remove the customers access to those funds. Providing access to delisted wallets costs you almost nothing. The same goes for changing a customers deposit address, just send them an email. And if they ignore the email and discover their mistake later put in place a way for them to recover funds - even if they need to pay a fee. By not doing this you are simply stealing from these people and when the authorities find out you will be arrested, imprisoned and the service will be shut down (more below on how you can help achieve this).
Coinexchange got blocked by spamhaus for "spamming" their users.
https://bitcointalk.org/index.php?topic=1532173.380"Just adding servers" is an overly simplistic comment made by people that generally have no understanding of the scale of running an exchange and what is involved. Databases, software engines and staff resources are all required. Sometimes the databases are unable to be scaled without spending extensive time upgrading them. Often the number of servers required are of such a large scale that special orders have to be placed and they cannot just be bought off the shelf. It also is dependant on the hosting providers and bandwidth available.
The customers sign up to use their service - it is not unreasonable to publish changes on the site that they signed up to.
Coins are often delisted for a reason. The coin network may not be operational or the coin may have a fork or coinswap. When a coin is delisted on an exchange the exchange clearly doesn't want to deal with the coin anymore. A reasonable delist period is usually given. (Bittrex 2 weeks & most exchanges give 1 month notice)
The purpose of an exchange wallet is so users can trade on the exchange. If you don't log in for a month and don't check the news page then you are not actively trading on the exchange and it is poor practice to keep those funds on an exchange.
To keep obsolete wallets going or require an exchange to continue supporting a delisted coin with wallet upgrades and coin network changes is impractical and uses resources for no financial return. It is not reasonable to expect any exchange to support a coin after a reasonable delist period and it is certainly not industry practice to support delisted coins after a set deadline.
You clearly use the news feed to hide and obscure extremely important from your customers. Why would someone who has only traded say ETH/USD care about PIN/BTC or MAID for example. Your tedious reply of blah blah stated very clearly in the User agreement blah is not a defence. Your user agreement is invalid because you use it to execute predatory business practices on innocent users. You make the service so difficult for some people to understand that your strategy of systematic theft is blatantly clear.
It is really important for people who trade on an exchange to check their wallet before sending, check news pages and be aware of events that affect their coins. Never keep funds on an exchange if it doesn't need to be there.
An exchange cannot choose who uses their services - therefore it is realy important that the customer who makes the choice reads the terms of trade before trading there.
Predatory business practices have to be proven. Often terms of trade are upheld. You have to have really good legal reasons for them to be set aside.
I'm not familiar with the laws of Belize.
in case of a mistake, the funds would be irrevocably lost
This is correct in a lot of cases. When a deposit address is changed - it is usually for a technical reason.
It may show on the blockchain but that does not mean it is recoverable. There are many potential technical reasons why it would not be recoverable.
If a coin is delisted there is not an infinite support time.
More lies, this one is a whopper (ignoring any case where the wrong currency was sent to a wallet - this can't usually be rectified). The funds are on the blockchain! You have the keys to the wallets, in fact some users appear to have witnessed funds being removed from their wallets without them being credited to their account. These funds have been stolen, I just can't see another way to look at this.
Where the wrong currency is sent to a wallet a cross chain recovery can often be done. Some wallets are not compatible. Not all exchanges support cross chain recoveries.
Users often mistake their funds from being swept from their deposit address to an exchange hot or cold wallet as "theft" of their coins. This is a totally seperate process from crediting the amount to the exchange ledger (showing available funds)
Sometimes large exchange wallets experience technical issues. Exchange wallets are very different from personal wallets - they have millions of transactions and often thousands of private keys.
In some cases when wallets start to malfunction the deposit addresses
have to be changed. This is often a coin specific issue because the wallet cannot handle the amount of transactions contained in the wallet. In such a scenario it is hard enough to access the existing funds in such a wallet and people continuing to deposit make it even more difficult.
Some wallets have hardcoded transaction limits - they are unusable when they reach the limit.
This is not an issue for personal wallets - but can be an issue for exchange wallets.
Exchanges do not earn anything from holding user funds - they make their earnings from people trading. When someone uses an exchange as a bank they are doing something risky, freeloading (using a service for which they are not paying) and using a service for which it was not designed.
Interesting article here with their CEO :
https://blockchainindustrygroup.org/the-livecoin-cryptocurrency-exchange-with-ivona-zlatova/