Unfortunately I believe that only collective actions would have effect, at least to give some room for negotiation.
There is nothing you can’t do against a exchange at least you collect proofs with a group of people affected by the same issue. I’m aware that exchanges use AI bots, and make some funny movements, but currently there are no specific rules that regulate trading activities in blockchain markets as far as I understand. We must be aware of, the most dirty practices that weren’t allowed in the regulated fiat markets, are being applied in the blockchain markets.
We could blame on Iota as well. A lot of people with funds taken in “custody”. Sometimes is better to have patience, give the benefit of the doubt while collect information and contacts who also have collected their proofs.
This could be quite tricky, because IT issues are very easy to justify, specially when it comes to blockchain, tangle thing or whatever new protocols. In parallel, the excuses of being hacked, and even suggest that many holders are stupid because they don’t understand the “technology”, is always present to avoid responsibilities.
On the other hand, is very easy to become emotional and start to blame everyone. ( I don’t say you are wrong, not at all)
The good point of bitcoin’s open source protocol, is that all the transactions from the blockchain can have retroactive effects regarding to law enforcement and providing proofs on the next future, when the justice, police, lawyers, tax officers, etc, will be more familiar with these protocols.
In that way, sooner or later, those who make shit at some moment in the past, will need to give explanations at court.
Unfortunately, if the owned millions of tokens, it would be very easy to pay lawyers and fines and keep going with the corrupt activities. Nothing change.
I edit. Legal actions are a must. Just wanted to make a point, that I’m also having issues with Iota.
They should be transparent and dedicate more time to solve this issue, to send the tokens back, instead of wasting so much energy and resources on pumping by spreading announcements and telling how fantastic and marvelous is Iota, on YouTube, media, forums and so on.