So is it the part of withholding their remaining funds or is it the reason for doing so? Since most major exchanges have various reasons where they can do so, livecoin are in no way unique with these terms.
Both! Just because they write in their terms of service that they can shit on my lawn every morning doesn't mean it's legal for them to shit on my lawn every morning. It's my lawn, I signed their user agreement, but there are other laws that govern where they can and cannot shit.
Exchanges are bound by law to freeze assets of known criminals, terrorists, and money launders. That's the only legal precedent they have for freezing a clients account. Posting mean things on social media doesn't give them the right to freeze a clients assets. Not only that, doing so is a violation of the law, and plain old common sense. Who the fuck does that? You wouldn't have withheld QS's last sig campaign payment even though he was slandering you.
Not to mention their ToS sounds like it was written by some one who has never used English in daily conversation, and it's full of stupid shit like "causing troubles." Please define "causing troubles" and explain to me how to avoid it, so as to prevent my account from being locked.
Please find similar clauses in Coinbase's or Binance's user agreements.