My question is: Does the ICANN allow registrars to change the holder instead of setting the domain on "hold" in such a situation?
Nobody really knows. There is a similar case in Kentucky in the US in which the state claims that a long list of gambling domains are operating illegally in Kentucky, and wants to take over all those domains. But none of them have any operations in Kentucky, and most of them have no operations anywhere in the U.S. The state is clearly completely wrong, but the judge is proceeding cautiously, since it is rare for a state to file such a completely meritless suit. Regards, John Levine, johnl@iecc.com, Primary Perpetrator of "The Internet for Dummies", Information Superhighwayman wanna-be, http://www.johnlevine.com, ex-Mayor "More Wiener schnitzel, please", said Tom, revealingly.