[ricardobeat]

Other exchanges will simply stop accepting coins that have been through this particular exchange X. It is the case already, as seen in the article.

Once that happens, why would exchange X take your BTC, or any other people exchange other crypto for BTC there, if they can’t circulate it?

[everfree]

I don't believe that it's feasible for all other exchanges globally to agree to coordinate to block coins that have ever touched exchange X in their ownership history. It's too much of a global coordination problem.