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If you mute someone on steemit, is it possible to still transfer steem to the person?
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I think if you mute someone in steemit, it has nothing to do with transfer of steem/sbd, as the purpose of "mute" in steemit is something else. You can transfer steem/sbd to a muted user also.

Purpose of Mute option in steemit

Mute Button allows a user to stop seeing the comments/posts of a particular user after having successfully muted them.

This function comes in handy when you are dealing with spam, or when you encounter inappropriate content/behavior that you no longer wish to see or experience.

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Yes, it is. I just tried, and it's definitely possible, and not even a warning against it. And people whom you muted can also still send you STEEM, so it's no point in muting people who do transaction spam. 

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