Just want to add a few things. I kept them to myself all these days but now it seems to be the right time to speak out
The only reason they are not giving in to the user's demands is because they believe he is in the wrong and they are in the right. And according to their Terms of Service (like them or hate them), they are right. Should the language in their ToS be updated to sound like they are not looking for reasons to with-hold user funds? Absolutely, I don't disagree with that part
Let's be honest, no one likes such ToS. In fact, no one likes any ToS. But I don't actually see anyone here telling the exchange how they should change their terms. If you disagree with them (which I understand), don't use the exchange, as simple as it gets. Still, if you think their ToS are violating local laws (let's assume you are a lawyer and know your thing), file an official complaint to a regulating body of that country. But really, some random dude on BTT telling a service (exchange, mixer, casino, etc) they should change their ToS is ridiculous. But even if not, why stop at LiveCoin then? There are literally hundreds of services out there whose representatives are active on the forum. Why not check their ToS as well now?
My verdict/opinion: they should re-enable the user's account, allow him to sell his "trash asset" version of MONA on the exchange, and take his BTC proceeds off the exchange (0.08 BTC + the converted MONA). Then, bar the user from making future deposits of any sort, effectively closing his account
Locking this user's account is the only thing which can be remotely construed as an attempt at scamming by LiveCoin (even if it is legit according to their ToS). All other things that the exchange has been accused of here is what technically constitutes market risk