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This is really and interesting statement from an exchange, you are blaming a user for him complaining about you and calling out your shady behavior and using it as an argument to save your repo.
This in no way is going to solve the problems here or inclined people to believe your decisions are right. Its a simple come-out through this situation for you, which is just unlock the person's account and let him enjoy his shitcoins, or compensate the loss with any other crypto.
You would probably get lots of bad reviews on twitter from any of your costumers, that doesn't mean you would get garb hold of all his assets on your exchange. You are just avoiding taking the right step here, as advised by many.
The only winner here is Quickseller. This is exactly what he hoped would happen. Is there any doubt that he wouldn't give two shits about OP's problem if he hadn't been kicked from the Livecoin campaign? He's had this long-running, stupid smear campaign against Hhampuz for quite some time now; I bet he's enjoying every minute of this.
You really have a thrash sense of judgement, this issue is about a service and there reaction to a effected costumer, you are just steering the drama with you bullshit.
I would advice not taking this person serious, he just looks like wiping his ass with the livecoin signature here and accusing for his personal agendas.
Grow up !