[phish]

It does sound like that Fair Poker is freezing his account in retaliation for his badmouthing them. I find that very unprofessional and illegal (unfortunately laws that can't be enforced are meaningless). Even if you think the OP is a jerk, that money is still his. They should release his money, not to give in to his threats, but just because it is the right professional thing to do.
If they do not, then THEY are truly everything he says they are and worse. A business organization has to be more responsible than to act like a child: "You bad-mouthed us so we're keeping your money, so there!"