Paycoin was created. It is what it is. People have various amounts in their wallets. It is legal property. If fraud was perpetrated by GAW (And I do believe it was), this does not suddenly make it legal to take someone elses property because you have decided that you think someone else did something wrong.
You keep saying that blacklisting coins through a hard fork, or blacklisting addresses (same thing in your analysis I think) is "taking someone elses property".
Aside from the merits or demerits of whether such is a good idea (and I am on the fence on that), I strongly disagree with your legal analysis. In order to make the claim that you make, you would have to be able to show that U.S. law would allow you to sue for fork that disenfranchised [GAWCEO's] coins. What would your legal theory be?
Theft/Conversion? What property was taken from [GAWCEO]? You still have the old coins in the original blockchain before the fork. No one "took" anything. Its just that the majority decided to proceed down a different blockchain that excluded you from participating. Hard to see any property conversion on those facts, absent an act of destruction of the original blockchain or coins.
Breach of contract? First off, you would have to demonstrate a contract. Who were the parties? Who would you sue? Everyone participating in the new blockchain? Every wallet that decided to follow the new fork?
The fact is, crypto is a consensus currency. If the consensus changes, so does the coin. If the consensus changes so as to exclude one party or their coins in an old blockchain, then the new consensus forms a new "contract" (if you want to use that theory). The old "contract" consensus doesn't go away (there is no breach of contract, because the old block can continue), but the coins in the old consensus likely lose all their value as a result of lack of interest/support. The new fork creates a new consensus, new contract.
I fail to see any legal problem with this. That is not to say I don't see the practical problems and the precedential problems (e.g., it might set a bad precedent and decrease confidence in crypto generally if people think their coins can be "taken" like that). But I don't think a legal claim of conversion of "property rights" or breach of contract would lie.
Crypto currency is considered property by the United States Federal Government. Taking or destroying someone else's property is a criminal act.
I am well aware that forking to remove coins can and has been done, but this does not make it legal or morally right.