a couple of interesting developments.
VFTW has reposted this about accounts actually being frozen and tickets refunded -
Iberia Freezing Accounts, Offering Ticket Refunds For Some Who Took Advantage Of 9000 Bonus - View from the Wing
Looks like the issue is with new accounts and people buying tickets from non-country of origin iberia sites.
I bought 10 tickets for 2 pax each
My 90,000 avios have posted to my own account, which is an old one.
I created a new account for my wife and attached her new membership number to the reservations I made on iberia Spain website (using a VPN) on my own account.
Her account is now locked however we have not received any email saying her portion of the ticket has been cancelled or the account frozen, it's just locked and we can't login.
Frustrating position to be in, given the tickets were purchase on my account and have the points credited now but her new account has been frozen and no points credited but reservations all made on my account.