Possibly one of the most worrisome situations with a motorized bicycle is the prospect of a seized engine. The first thing to do is squeeze the clutch handle to disengage the clutch drive. If the bike now rolls freely, then it is quite possible the engine has seized. This is typically caused by either foreign material entering the combustion chamber, or excessive heat buildup due to a lack of lubrication (2-stroke oil).
If the clutch handle is squeezed, and the bike still does not move freely, then the chain has most likely jammed in the engine. This is usually due to a chain which has too much "slack". The best way to free the chain is to move the bike in reverse. Usually tools are required for this procedure - once the chain has jammed, it will require a fair bit of force in the opposite direction in order to free it.
I have attached a photo below. The clutch cover has been removed to show what happens when the chain jams. This should help!