Can they really just seize the domains and along with them people's money? That doesn't sound right.
Yes, the US can if the domain is hosted in the states. They only seize the domain though, if the hoisting is off shore.
Yep, they can seize the domain name if it's hosted in the US...but they can also work with other governments and seize domains in other countries. They seized Bodog's domain name temporarily in 2011 which was hosted in Costa Rica I believe....so yes, they can do it. However, this particular event seems like an exit scam and not an actual seizure.
Jeez. I really don't get it. The internet is free, and they are struggling as hard as they can to stop that. The freedom that the internet has must make governments crazy. Well I'll tell you just one think - the fight will not stop!