Because it deprives the actual owners of the funds, to whom they have a fiduciary trust, of their private right of ownership of those funds, which includes the sole and exclusive right to vote with those funds.

No part of their contracted arrangement with exchanges forfeited that lawful right of ownership. The exchanges seized those funds and exercised ownership of them in violation of their fiduciary trust. Hanging's too good for 'em.

Remember your legal theory when you have a daughter in school, under the control of authority figures there.