They can't. All that STEEM was powered up today, to allow for the witness voting. Anyone trying to withdraw will have to wait 13 weeks; they already turned off the option to even request withdrawals on Binance apparently.
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Surely that can’t be legal
We'll see. Folks are looking into the legal/lawful side of things as well.
If it isn't illegal, or the exchanges get away with it anyway, I strongly recommend folks do with exchanges as I do with banks: refuse to do business with them at all.
Citi stole from me, and the legal system enabled them to do it. As a result I am now aware that banks are vectors for thievery, and I don't put money in them. I never ever, will again.
Don't do busines with a thief or a liar, or you will lose money.