Selfhosted
A place to share alternatives to popular online services that can be self-hosted without giving up privacy or locking you into a service you don't control.
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I'm not sure what the consequences are for ignoring it, but it would violate the ICANN RAA to lock a person out of being able to transfer their domain except for legal reasons like evidence of fraud or a court order. Sure, they can terminate your account on their services but they can't prevent you from transferral without violating their agreement with ICANN.
It would be a weird scenario that you're describing that would be unusual and exceedingly rare. You would need to be directly connected to something highly illegal for that to happen, not just a normal user.
That's why I said I don't trust them to not fuck up, not that it's something that should ordinarily be expected. Additionally, especially considering how the rule of law in their jurisdiction is going recently I wouldn't assume it will always be this way.