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Transfer the domain to them immediately, without any strings attached or questions asked, then write them you transferred it, then explain how it all was a stupid mistake on your side and that you're very sorry, offer them a few thousand $ for their expenses, indicate (in friendly tone) that you are virtually broke and would have file for whatever the bancrupty law is in your country, also include if you have kids and family, and then hope for the best
Those who recommend to "fight it" need to grow up. You won't even survive the first round. If they really want they can make your life truly miserable for a really long time
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