you clearly don't really understand the blockchain or Steem. Steemit is a company, they are not the Steem blockchain.
The company that is Steemit has terms of service for using their front end and they can be held legally responsible if people break the law and they allow it. exortion is a clear violation of the law and they are entirely within their rights to remove the ccount from the Steemit.com frontend.

All the information, the account, all the documents, everything they have done is still on the blockchain and can be seen, it just cant be seen through steemit.com