Do you foresee any scenario where the funds are returned to the community321 wallet and would still be able to be recovered/transferred to safe haven before being frozen and awaiting the next fork for "re-seizure?" That's honestly my only hope right now given the fact that Justin/Tron seem so incompetent on the Steem blockchain and could still possibly be outwitted.
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If by consensus community321 owns the coins from Bittrex's perspective, community321 is entitled to ask bittrex to act as custodian and distribute funds on his behalf. The Bittrex argument is ostensibly to protect blockchain sovereignty, while at the same time ignoring individual sovereignty. According to Bittrex's own logic, @community321 could offer Bittrex money to distribute the funds to whom ever they choose. His key, his coins right? Even a fee of 10% is a sizable sum, but at the same time, I think most former steem holders would gladly pay it.
I see the same interpretation that Bittrex is going to honor the current keyholder, which is good... but I'm unsure if they have a set process. I hope they'll enable the account owner to verify and provide a proper wallet memo via customer support, but I'm afraid they'll insist on sending it back to the originating wallet, which would of course make it vulnerable to a transaction freeze.