The entire issue still revolves around 1 person's complaints against Livecoin. Insolvency would likely involve limiting withdrawals across several other coins than just the 2 they have issues with. You can bet far more than one customer would be complaining about it here. Who else commenting in this thread besides OP has been negatively affected by Livecoin?
Insolvency just means inability to pay their obligations. For an exchange Livecoin's size -- even if it's just limited to those two coins -- millions of dollars may be nothing to sneeze at. I don't want to speculate too much about that, but we should acknowledge that -- unlike many other exchanges in their position -- they made no move to make their customers whole. That's a red flag.
The OP put forth the scam accusation, but he's certainly not the only one complaining. Here are a few other examples:
I've also seen complaints about other long-term disabled wallets but I'm not sure on the specifics. I see dozens of coins listed with "N/A" under withdrawal fee -- Monacoin and Monero included -- on Livecoin's site. Can anyone confirm whether those wallets are disabled? Are they like Yobit, keeping various wallets in "maintenance" for months/years at a time?