I don't see how there could be legal ramifications for not processing transactions? Witnesses are free to process whatever transactions they feel like, and has decided to run node software that ignores incoming transactions from Steemit. He's not really freezing Steemit's funds, he's just ignoring Steemit's requests to process transactions. If
wanted to, he could also, say, only process transactions with a memo of "fjoqwfqa".
RE: Justin Sun Conversation with Witnesses Is Online. @Ned Sold Out The Community - Failed to Disclose.