I have... minimal sympathy with these people - a lot of the fault lies with themselves for not understanding the rules, morals and society of the country they were buying from.
I don't think that this generally makes .ly domains any more "unsafe".
(on the other hand; if this is an example of Libya deliberately creating rules to seize domains that is another matter, but at least in this case the complaint seems "legitimate" so we may have to wait and see)