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RE: The Announcement of Hardfork 23.0
If a potentially malicious account is powered down it can't do any damage any more. The account can cash in its STEEM and SDB and leave then chain or challenge the decision and if successful power up again.
One thing that must be considered is the possibility of a malicious account sending to the exchange, and then sending their funds to a different account to power up. Though I would say that in this case, I think all of the users effected were already powering down and leaving, so I think your solution would have worked.