Yeah, that's the point. If it was never ratified as a legal document, then legally Ned was allowed to sell Steemit with the ninja-stake attached to it, allowing the new owner to do whatever they wanted with it.
So whilst Ned may have acted like a shit, and the witnesses like cowards, as far as I can see here Justin broke no laws in the first instance. However I reckon that changed the minute he persuaded exchanges to steal people's funds for the power up.