Yes it is a death blow. Dont try and call it anything else. When the DTCC has to step in because the company has shares floating around that should not be there, that means shareholders are being scammed.
Let us not jump to any conclusions here. Though this may not be good news, it is not a death blow. Please do not have a "Lynch Mob" mentality -- let us get the facts first.
This attitude is exactly what got you in trouble in the first place.