Could someone please explain this? What is going on? Either you hack a domain or you don’t—but once the owner finds out, shouldn’t they be able to verify that it’s locked down. How can someone steal a domain, permanently, and trade with it. Can this happen at any TLD or is .is just negligent/apathetic? Why would I ever buy a .is domain if the TLD lets people steal it? I don’t understand...
My guess is that they are using a virtual business address service that is commonly used by spam/fraud organizations (e.g., fake pharmaceuticals), and maybe ISNIC is cracking down on this due to abuse. They don't want their TLD to be known as a junk TLD like .ck, .gq, .info, etc. Or someone is attempting to take legal action against the owner of the domain and ISNIC can't comply because they just have a fake address with no known physical entity.