From what I have read this would not cause your account to be shut down, but may lead to passes no longer being made available to you.
There's a reason why they have closed your account. And it's not transferring passes. Seems there's more to your story that you're not telling.
I think everyone would benefit if you explained the situation in more detail and responded to some of the questions that you have been asked. I think you'll find that people want to actually help you, but you aren't going about this in a way that facilitates a helpful reply. And this is probably why you've gotten the response from Qantas that you have so far.
And BTW, it's definitely not corporate theft! Being alarmist like this isn't going to help your cause. If you check the terms and conditions for Qantas, the points have no monetary value and they can pretty much do what they like with them. You agreed to this when you signed up to their program. If you really think they've engaged in theft then you should be speaking to the police, or at least a lawyer.