"Let's stop the discussion."
Since you are continuing I would try again.
As I wrote before: those are related to steemit.com site and Steemit Inc services that are working on the Steem platform, which is decentralized, peer to peer, blockchain based.
Again: user @blocktades was added by devs to the bad actor list soon after this case came out. Which means that he wasn't able to log in to steemit site anymore. You even have a proof from him on the screenshot he provided claiming he's going to return your money back. As you now know, he lied.
Due nature of this platform, inability to log in on the steemit.com site can't stop user from using his account, as stated in the term you've just quoted.